Trump's ‘Baby Bonus': How New Mothers Could Soon Get $5K
In light of declining U.S. birth rates, President Donald Trump is considering offering a $5,000 incentive to mothers who give birth. The proposal was pitched to White House advisors, ABC News reported, and Trump reportedly said, 'Sounds like a good idea to me.'
Read Next:
Try This:
However, the incentive is far from a done deal. First, a bill would need to be drafted, submitted to Congress and then passed by the House and Senate. At that point, Trump would have 10 days, excluding Sundays, to sign or veto it. Bills can take days, weeks or years to pass or fail a vote in Congress.
The White House hasn't released additional details on where the money would come from, how it would be distributed or specific eligibility requirements.
If birth rates after the program is introduced rival 2023 rates, the government would have to shell out $17.9 billion to pay parents. If the program works to incentivize Americans to have children, it could be even more.
Be Aware:
The U.S. saw just 3.6 million babies born in 2024, a slight increase from 2023's record low of 3.59 million, according to CDC figures. The birth rate has been below the 'level of replacement' in the U.S. since 2007, according to Time.
The U.S. has relied on immigration to bolster the population; Trump's widespread deportations and closed-border policies could hamper this growth.
The cost of raising a child from birth to age 18 increased by 35.7% between 2023 and 2025, according to a recent LendingTree report.
Annual expenses to raise a young child, after tax exemptions, are $29,419 per year, with daycare costs eating half that money at an average price of $17,836, up 51.8% in the past two years. Speaking of eating, food expenses for kids rose by 29.6%.
No doubt, $5,000 could help cover birth costs, partially compensate for sparse maternity leave pay — especially in states that don't have Paid Family and Medical Leave programs — and help pay for anything from car seats and cribs to formula in the first year.
However, $5,000 would only make a small dent in first-year childcare costs and may not encourage people to have kids. A variety of factors have discouraged Americans from having children, including a lack of standardized paid family leave programs and rising healthcare costs.
Karen Guzzo, director for the Carolina Population Center at the University of North Carolina at Chapel Hill told Time that work instability, economic strains, global conflicts and climate change are just some of the reasons people are delaying — or avoiding — starting families.
'There's no question that families need policies that make it possible for moms and parents to care for their kids, go to work and contribute to their communities,' said Kristin Rowe-Finkbeiner, executive director and CEO of MomsRising, in a press release.
She emphasized infrastructure changes, fair pay for working parents, paid family leave and even an expanded monthly child tax credit as potential solutions.
'When we become a family-friendly country,' she said, 'families will have more children.'
Editor's note on political coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on GOBankingRates.com.
More From GOBankingRates
5 Luxury Cars That Will Have Massive Price Drops in Spring 2025
4 Things You Should Do if You Want To Retire Early
10 Genius Things Warren Buffett Says To Do With Your Money
The New Retirement Problem Boomers Are Facing
Sources
ABC News, 'Trump administration looking at $5,000 'baby bonus' to incentivize public to have more children.'
Time, 'U.S. Births Last Year Fell to Lowest Since 1979.'
LendingTree, 'It Costs an Additional $297,674 to Raise a Child Over 18 Years, Up 25.3%.'
MomsRising, 'Moms Leader: Ideas White House Is Reportedly Considering to Boost Birth Rates Are 'Sheer Lunacy'.'
This article originally appeared on GOBankingRates.com: Trump's 'Baby Bonus': How New Mothers Could Soon Get $5K
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
7 minutes ago
- Yahoo
Sector ETFs Likely to Gain on May Inflation Data
Consumer prices in the United States rose modestly in May, indicating that President Donald Trump's tariffs have not yet had a significant impact on inflation, according to the Bureau of Labor Statistics (BLS) report released Wednesday. The Consumer Price Index (CPI) increased by just 0.1% in May, falling short of the 0.2% monthly increase forecasted by a Dow Jones survey, as quoted on CNBC. This puts the annual inflation rate at 2.4%, matching economists' expectations for the year. Excluding the volatile food and energy categories, the core CPI also rose by 0.1% for the month, bringing the year-over-year rate to 2.8%. These figures were lower than forecasts of 0.3% and 2.9%, respectively. A continued decline in energy prices helped offset some of the monthly inflation. Energy prices dropped 1% in May, with gasoline falling by 2.6%, pushing its annual decline to 12%. Meanwhile, new and used vehicle prices fell by 0.3% and 0.5%, respectively—despite expectations that tariffs might drive these categories higher. Against this backdrop, below we highlight a few sector-based exchange-traded funds (ETFs) that may gain in the near term. Technology – Technology Select Sector SPDR ETF (XLK) Given the muted inflation, market expectations suggest the Federal Reserve will wait until at least September before considering interest rate cuts. Trump continues to pressure the Fed to act, citing both easing inflation and signs of labor market softness. Still, low rates are expected to boost high-growth sectors like technology. The underlying Technology Select Sector Index includes companies from the following industries: computers & peripherals; software; diversified telecommunication services; communications equipment; semiconductor & semiconductor equipment; internet software & services; IT services; wireless telecommunication services; electronic equipment & instruments; and office electronics. The fund charges 8 bps in fees and yields 0.65% annually. Healthcare – iShares U.S. Medical Devices ETF (IHI) The index for the medical care commodities rose 0.6% sequentially in May. The index has advanced 0.3% annually. The underlying Dow Jones U.S. Select Medical Equipment Index measures the performance of the medical equipment sector of the U.S. equity market. The fund charges 40 bps in fees and yields 0.44% annually. Restaurants – AdvisorShares Restaurant ETF EATZ The index for the food away from home increased 0.3% sequentially and 2.2% annually in May. However, the gains were higher than the 2.9% annual increase in the food at home index. This disparity may encourage some consumers to opt for eating out. Overall, food prices rose 0.3% on the month. We also expect the restaurants to pass on the increased costs to consumers. The EATZ ETF is an actively managed exchange-traded fund that seeks to achieve its investment objective by investing at least 80% of its net assets in securities of companies that derive at least 50% of their net revenue from the restaurant business. The fund charges 99 bps in fees and yields 0.17% annually. Real Estate – Real Estate Select Sector SPDR ETF XLRE Weighted shelter makes up 32.77% of CPI, of which 7.8% is rent and 23.68% is private housing, per data from MacroMicro. The shelter index jumped 0.3% in May. Costs increased 3.9% annually. The annual shelter inflation rate slowed to its lowest since late 2021. The underlying Real Estate Select Sector Index includes securities of companies from the following industries real estate management and development and REITs, excluding mortgage REITs. The fund yields 3.31% annually and charges 8 bps in the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Technology Select Sector SPDR ETF (XLK): ETF Research Reports Real Estate Select Sector SPDR ETF (XLRE): ETF Research Reports iShares U.S. Medical Devices ETF (IHI): ETF Research Reports AdvisorShares Restaurant ETF (EATZ): ETF Research Reports This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Yahoo
8 minutes ago
- Yahoo
JP Morgan maintains 2025 forecast for oil prices in low-to-mid $60s
(Reuters) - JP Morgan downplayed geopolitical concerns on Thursday and maintained its base case forecast for oil prices to stay in the low-to-mid $60s through 2025 and $60 in 2026, but said certain worst-case scenarios could send prices surging to double those levels. U.S. President Donald Trump said on Wednesday the United States was moving personnel out of the Middle East because it "could be a dangerous place". He also said the U.S. would not allow Iran to have a nuclear weapon. Iran has said its nuclear activity is peaceful. Increased tension with Iran has raised the prospect of disruption to oil supplies, with both sides set to meet on Sunday. The geopolitical risk premium is already at least partially reflected in current oil prices, which are just under $70, trading about $4 higher than their estimated fair value of $66 for June, JP Morgan said in a Thursday note. However, the analysts drew attention to certain worst-case scenarios, where the impact on supply could potentially extend beyond a 2.1 million barrels per day reduction in Iranian oil exports. Attention is focused on the risk that a broader Middle East conflict could close the Strait of Hormuz, or provoke retaliatory responses from major oil producing countries in the region. "Under this severe outcome, we estimate oil prices could surge to the $120-130/bbl range," they said. Brent crude futures were trading near $68.76 per barrel on Thursday, while U.S. West Texas Intermediate crude futures were at $67.14 per barrel. [O/R] If nuclear negotiations fail and conflict arises with the United States, Iran will strike American bases in the region, Iranian Defence Minister Aziz Nasirzadeh said on Wednesday, days ahead of a planned sixth round of Iran-U.S. nuclear talks. The U.N. nuclear watchdog's board of governors declared Iran in breach of its non-proliferation obligations on Thursday and Tehran announced counter-measures, as tensions rose in the Middle East. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
San Francisco Chronicle
11 minutes ago
- San Francisco Chronicle
The Latest: California challenges Trump's use of military in Los Angeles
Opponents of President Donald Trump 's administration are set to rally in hundreds of cities on Saturday during the military parade in Washington for the Army's 250th anniversary — which coincides with Trump's birthday — as protests grow in response to his immigration policies. The 'No Kings' protests have been called, organizers say, to protect America's democracy as Trump vows to increase his deployment of military forces inside the United States. A federal court hearing is scheduled for Thursday challenging Trump's use of the National Guard and Marines to support immigration raids in Los Angeles. California leaders warn that the military intervention is the onset of a much broader effort by Trump to overturn norms at the heart of America's political system. Trump was booed and cheered at the Kennedy Center, where he and first lady Melania Trump attended the opening night of 'Les Misérables.' He's been remaking the Kennedy Center in his image as part of a campaign to rid American cultural institutions of what he describes as liberal ideology. Among the eight new vaccine policy advisers Health Secretary Robert F. Kennedy Jr. named to replace the CDC vaccine panel he abruptly dismissed this week are people who have spread misinformation and protested COVID-19 lockdowns. Here's the Latest: Attendees of the military parade in Washington this weekend will hear a familiar voice. Trump announced Thursday morning that Greenwood will be performing at the parade on Saturday, which marks the 250th anniversary of the U.S. Army and also happens to be the president's 79th birthday. Greenwood is the singer behind 'God Bless the USA,' which has been Trump's walk-on song at rallies for years. 'What a day it will be!!!' Trump wrote on his social media site. What to know about the 'No Kings' protests planned for Saturday The 'No Kings' protests are set to take place to counter what organizers say are Trump's plans to feed his ego this Saturday during a military parade on what is also Trump's 79th birthday. The 'No Kings' theme was orchestrated by the 50501 Movement, a national movement made up of everyday Americans who stand for democracy and against what they call the authoritarian actions of the Trump administration. The name 50501 stands for 50 states, 50 protests, one movement. Protests earlier this year have denounced Trump and billionaire adviser Elon Musk, the now former leader of Trump's Department of Government Efficiency, a government organization designed to slash federal spending. Protesters have called for Trump to be 'dethroned' as they compare his actions to that of a king and not a democratically elected president.
