'Pro-family initiative': Donald Trump announces $1,000 government-funded accounts for American babies — who qualifies for the scheme?

Time of India

a day ago

Donald Trump announces a 'pro-family' legislation
US President
Donald Trump
has unveiled a federal plan to boost future financial security for the next generation.
The initiative includes opening $1,000 investment accounts for every American baby born between 2025 and 2029, reports the Guardian.
The MAGA supremo describes this move as 'a pro-family' effort, which is part of a sweeping bill that has passed the House but still faces hurdles in the Senate.
The accounts are dubbed as 'Trump accounts,' and would be tax-deferred and track stock market performance.
'For every US citizen born after December 31, 2024, before January 1, 2029, the federal government will make a one-time contribution of $1,000 into a tax-deferred account that will track the overall stock market,' Trump said during a White House roundtable with major business leaders.
Parents or guardians will manage these "Trump accounts," which allow up to $5,000 in additional annual contributions from private sources. Trump pitched the initiative as a way for families to benefit directly from the strength of the American economy. 'It's a pro-family initiative that will help millions of Americans harness the strength of our economy to lift up the next generation,' he said.
The plan has received strong backing from several prominent CEOs, including Michael Dell, Uber's Dara Khosrowshahi, Goldman Sachs' David Solomon and Robinhood's Vladimir Tenev.
Trump applauded their commitment, saying they were 'really the greatest business minds we have today' and that they were 'committed to contributing millions of dollars to the Trump account.'
House Speaker Mike Johnson also praised the scheme. 'It's a bold, transformative policy that gives every eligible American child a financial head start from day one,' he said. 'Republicans are proud to be the party we always have been.
It supports life and families, prosperity and opportunity.'
The accounts are part of what Trump calls his 'one big, beautiful bill.' The bill is a sweeping
budget
package that, according to the Congressional Budget Office (CBO), could add $2.4 trillion to the national debt over the next decade. The CBO also warned that the proposed changes, which include cuts to Medicaid and food assistance, could leave nearly 11 million more Americans without healthcare by 2034.
Despite the criticism, Trump remains optimistic. 'Beneficiaries would really be getting a big jump on life, especially if we get a little bit lucky with some of the numbers and the economies into the future,' he said.
Johnson warned that failing to pass the bill would lead to 'the largest tax increase in American history.' Johnson urged lawmakers to back what he called 'pro-growth legislation' to benefit all Americans.