Trump Administration To Give $1,000 Boost to All Newborn Babies

Newsweek

a day ago

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President Donald Trump has announced a $1,000 tax-deferred investment account for American babies born during his second term.
The president revealed his plans at a roundtable at the White House on Monday, alongside several prominent CEOs, including those of Uber and Goldman Sachs.
Newsweek has contacted the White House and the Democratic Party, via email, for comment.
Why It Matters
The president said these "Trump Accounts" are "fully funded through targeted reforms in the One Big Beautiful Bill," a piece of legislation that has faced much criticism and sparked the now-viral spat with Elon Musk. The broad budget package passed the House by one vote and is now headed to the Senate, where some Republicans have voiced concerns about certain parts of the bill, which the Congressional Budget Office has said will add $2.4 trillion to the U.S. national debt.
President Donald Trump speaks during an "Invest in America" roundtable with business leaders at the White House, Monday, June 9, 2025, in Washington.
President Donald Trump speaks during an "Invest in America" roundtable with business leaders at the White House, Monday, June 9, 2025, in Washington.
AP
What To Know
The White House said the accounts will "afford a generation of children the chance to experience the miracle of compounded growth and set them on a course for prosperity from the very beginning."
Every U.S. citizen born after December 31, 2024, before January 1, 2029, will receive a one-time contribution of $1,000 that will "track the overall stock market," Trump said.
The accounts, which will be controlled by guardians, can allow additional private contributions of up to $5,000 annually.
"This is a pro-family initiative that will help millions of Americans harness the strength of our economy to lift up the next generation. And they will 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," Trump said.
"In addition to the substantial financial benefits of investing early in life, extensive research shows that children with savings accounts are more likely to graduate high school and college, buy a home, started a business and are less likely to be incarcerated. Trump Accounts will contribute to the lifelong success of millions of newborn babies," he added.
The White House has expressed some concern about declining birth rates, with Vice President JD Vance saying on January 24 that he wanted "more babies" to be born in the U.S.
In February, Trump signed an executive order expanding access to in vitro fertilization for Americans. And Transport Secretary Sean Duffy directed his department to give funding precedence to "communities with marriage and birth rates higher than the national average."
The White House has also explored giving women a "baby bonus" of $5,000 to encourage Americans to have more children, The New York Times reported in April.
What People Are Saying
House Speaker Mike Johnson said: "It's a bold, transformative policy that gives every eligible American child a financial head start from day one. Republicans are proud to be the party we always have been. It supports life and families, prosperity and opportunity."
Goldman Sachs CEO David Solomon: "This initiative gets at the core of binding those future generations to the benefits and the potential of America's great companies and markets. Early childhood investments have far-reaching benefits, and Goldman Sachs is proud to support his initiative ... Our economy's future vitality is dependent on young people understanding the power of investing for the long term."
Uber CEO Dara Khosrowshahi: "What if we could give that same powerful, real, tangible hope that comes from having a stake in your own future and a stake in the best companies in the world to every single child that's born in this country? That's the promise of the Invest in America Act. It's not just an account; it's a launchpad. It puts the unstoppable engine of compounding to work for our kids, building a future for them from day one."
What Happens Next
The bill, which includes the "Trump Accounts" program, is headed to the Senate, where changes are expected as legislators aim for a July 4 deadline. The chamber has a 53-47 Republican majority, so there is only a little room for GOP dissent if the bill is to become law.