What is "Trump Account" for babies, the new 'big, beautiful tax bill' that could get $1000 to newborns
Credit: Instagram/@realdonaldtrump
When Donald Trump is involved, subtlety usually leaves the room. So it's no surprise that Republicans have unveiled a new policy that practically has his name written in fireworks.
It's loud, bold, and unmistakably Trump — right down to the branding.
House Republicans have just unveiled a proposal to give every American baby born between January 1, 2025, and January 1, 2029, a $1,000 head start in life — deposited into a special investment account. What was once subtly called a 'MAGA account' has now been rebranded with zero nuance as the 'Trump Account.'
This renaming came through a last-minute amendment to the party's sweeping fiscal package, which they've nicknamed the 'One, Big Beautiful Bill.'
And just in case anyone missed the point, the change makes it unmistakably clear: this baby bonus is brought to you by brand Trump.
So, what exactly are Trump Accounts?
The original idea was to launch 'money accounts for growth and advancement' — MAGA for short, in a not-so-subtle nod to Trump's famous campaign slogan. But apparently, even that wasn't Trumpy enough. So Republicans took it a step further, ditching the acronym in favor of straight-up name recognition.
According to the bill, the Trump Accounts would 'seed' $1,000 into an investment account for every eligible American newborn starting in 2026. Parents can add up to $5,000 each year into these accounts. If they don't set one up, the government will do it for them.
The catch? The money must be invested in a broad stock index and can only be used for specific purposes like higher education, starting a business, or purchasing a home.
Any withdrawals for other reasons would be taxed as ordinary income, not at the lower capital gains rate — a point of concern for some financial professionals. 'It's not very attractive,' said financial adviser Ann Reilley. 'It just seems like they're complicating things for no reason.
'
Still, among the long list of symbolic tributes Republicans have floated — from putting Trump's face on the $100 bill, to renaming Dulles Airport, to letting him negotiate the purchase of Greenland (to be rebranded 'Red, White and Blueland') — the Trump Account seems to be the most viable one yet. It's part investment plan, part political branding exercise. Classic Trump: a baby gift with a bold signature.
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