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The Hill
12-06-2025
- Business
- The Hill
What a $1,000 baby bond buys, and why one and done isn't enough
A new federal proposal included in the administration's 'one, big, beautiful' bill would provide a one-time deposit of $1,000 to every child born between 2025 and 2028 through Trump Accounts — previously known as the Money Account for Growth and Advancement, or MAGA Accounts. While the name has changed, the underlying proposal remains the same. It's a welcome sign that lawmakers on both sides of the aisle continue to recognize the value of starting early when it comes to building financial security. There's longstanding bipartisan support for investing in children from birth. Back in 2006, then-Sen. Jeff Sessions (R-Ala.) introduced a Portable Lifelong Universal Savings Account — a PLUS Account — modeled after the federal thrift savings plan, with an initial $1,000 deposit and a $5,000 annual contribution limit. More recently, Sen. Cory Booker (D-N.J.) reintroduced the American Opportunity Accounts Act, commonly known as baby bonds, which would seed $1,000 into an account for every child born after Dec. 31, 2023. The most recent Trump Account draws from a proposal by Sen. Ted Cruz (R-Texas) and would invest that $1,000 in an index fund. It's been nearly two decades since that first proposal, and Congress is still circling the same starting number. Imagine how much stronger families could be today if, instead of restarting the conversation, we had built on it. There's broad recognition that raising a family has never been more expensive and that the rising cost of essentials is contributing to declining birth rates. Recent estimates show that families spend between $15,000 to $21,000 in a child's first year alone, covering diapers, formula, baby gear, and child care. These aren't optional extras, they're baseline costs of parenthood. Baby food and formula costs rose 8.7 percent from January 2023 to January 2024, outpacing overall inflation. Diapers remain a major strain on household budgets, with 1 in 3 struggling to afford them even before the pandemic, and 1 in 4 now reporting they've had to miss work or school due to diaper needs. Child care is another overwhelming expense. In nearly every state, the cost of full-time infant care exceeds $14,000 a year, which is more than 10 percent of median household income. KPMG estimates that the cost of daycare and preschool has surged by 263 percent since 1990. On top of that, tariffs could raise prices on cribs, car seats and strollers by as much as 128 percent, according to S&P Global. These are basic safety items, not luxury goods, and they're increasingly out of reach. None of these costs can be meaningfully addressed by a one-time Trump Account, or by baby bonds or PLUS Accounts alone, but they shape the reality into which these proposals are introduced. Families grappling with steep costs today are far less likely to contribute to long-term savings accounts, even with a $1,000 head start. That's why policies like the Trump Account must be viewed not as stand-alone solutions, but as part of a comprehensive strategy to help families meet today's demands while planning for tomorrow's opportunities. The Trump Account would represent a step forward in how the government invests in family and long-term financial stability. It shares a key idea with prior proposals: the earlier the investment, the greater the return. There are, however, important differences in design. Baby bonds were proposed as government-funded accounts invested in a bond with an anticipated 3 percent annual return, receiving ongoing contributions, especially for children from households with limited financial resources, and these distinctions are a constructive differentiator. The Trump Account, by comparison, offers a one-time government deposit to be invested in an index fund, which has the potential for a higher rate of annual return, and because it is tied to the stock market, also carries additional risk. As a one-time deposit, it is not yet a full solution because it lacks the consistent annual investment to make its potential a meaningful tool for financial growth for children who are born into families without wealth. This ongoing investment matters. With inflation driving up prices and wages failing to keep pace, families need more than symbolic gestures. They need tools that build over time and bridge the gap between short-term help and long-term financial security. This is not just about individual families. It's about national economic potential. The Institute for Women's Policy Research estimates that if women participated in the workforce at the same rate as men, it could add $4.3 trillion to the U.S. economy this year. But that participation depends on the affordability of child care, baby essentials and family stability, areas where rising costs continue to hold parents back. The Trump Account reflects growing awareness that financial opportunity begins at birth. But if we're serious about building economic resilience, we must ensure that early investments are designed to grow and to last. Ongoing investment, like in the baby bonds and PLUS Account proposals, offers a path forward that is practical, scalable and rooted in research. If we want to give every child a real chance at economic mobility, it's not just about when and where we invest. It's about how we follow through. Marisa Calderon is the president and CEO of Prosperity Now.
South China Morning Post
03-06-2025
- General
- South China Morning Post
Trump's war on Harvard shows no sign of stopping
In January 2017, just a week after taking office, US President Donald Trump signed the now-infamous travel ban , barring citizens from seven predominantly Muslim countries from entering the United States. Harvard's then-president, Drew Faust, issued a sharply worded open letter almost immediately, reaffirming the importance of international students and scholars to the university's 'identity and excellence'. Trump didn't respond publicly, but it is well known that he holds grudges. Advertisement By September that same year, then-attorney general Jeff Sessions announced the end of the Deferred Action for Childhood Arrivals, a policy from the Obama administration for young undocumented immigrants who came to the US as children. Harvard responded the same day, with Faust writing that 'this cruel policy recognises neither justice nor mercy'. The university offered undocumented students legal counsel and advisory support. In July 2020, as Covid-19 raged, the Immigration and Customs Enforcement agency declared that if classes were held online in the autumn, international students would have to leave the US or transfer to a school with in-person instruction. Harvard and the Massachusetts Institute of Technology filed a joint lawsuit In court, Harvard made the case before US District Judge Allison Burroughs, appointed during the Obama administration, that many of its international students could not return home because of global travel restrictions. Only a week after issuing the guidance, the government withdrew the rule Fast forward to May 22 this year. The second Trump administration's Department of Homeland Security announced the cancellation of Harvard's eligibility to enrol international students , citing 'fostering violence, antisemitism, and coordinating with the Chinese Communist Party on its campus'. The world was stunned. Advertisement
Associated Press
27-05-2025
- Business
- Associated Press
US Sen. Tommy Tuberville announces 2026 bid for Alabama governor
AUBURN, Ala. (AP) — Republican U.S. Sen. Tommy Tuberville, who entered politics after a successful career as a head football coach at Auburn and three other major college programs, announced Tuesday that he is running for governor of Alabama next year. His announcement on the Will Cain Show on Fox News followed weeks of speculation, and associates saying Tuberville planned to enter the race. 'I'm doing this to help this country and the great state of Alabama,' Tuberville said. The former coach is expected to be a formidable entry in the governor's race. Two-term Republican Gov. Kay Ivey cannot run again because of term limits. Tuberville harnessed fame from his college coaching days to win election to the U.S. Senate in 2020, casting himself as a political outsider closely aligned with President Donald Trump. 'God sent us Donald Trump,' Tuberville said during his campaign. Bill Armistead, the former chairman of the Alabama Republican Party, said Tuberville's presence will make other would-be candidates 'think twice' about jumping in the gubernatorial race. 'I would be very surprised if Senator Tuberville is not elected governor of the state of Alabama,' Armistead said. Alabama Lt. Gov. Will Ainsworth, who had been expected to run for governor, announced last week that he would not seek the office. In the 2020 Republican primary, Tuberville defeated former U.S. Attorney General Jeff Sessions, who held the Senate seat for two decades before resigning to become Trump's attorney general in 2017. Months later, Tuberville defeated incumbent Doug Jones, who had been the first Alabama Democrat elected to the Senate in decades. During his time in the Senate, Tuberville has continued to align himself closely with Trump. In 2023, he maintained a monthslong blockade on military promotions over his opposition to a Pentagon policy that provided travel funds and support for troops and their dependents who seek abortions but are based in states where they are now illegal. Tuberville, a native of Arkansas, was the head football coach at Auburn from 1999 to 2008, where he led the team to eight consecutive bowl appearances and one Southeastern Conference championship. He also served as head coach at Mississippi, Texas Tech and the University of Cincinnati, retiring in 2016. He is sometimes referred to as 'Coach' instead of 'senator' by those that work with him. Club for Growth PAC last week preemptively week endorsed Tuberville in the governor's race 'should he announce his candidacy.' Tuberville faced questions about his residency in the 2020 Senate race, where his political opponents referred to him as a 'Florida man' or a 'tourist in Alabama' as they questioned if he lived in the state. The Alabama Constitution requires that governors must have been 'resident citizens of this state at least seven years next before the date of their election.' Property tax records show he owns a $270,000 home in Auburn, where he claims a homestead exemption, and a $4 million beach home in Walton County, Florida. Voting records show that Tuberville switched his voter registration from Florida to Alabama in 2019. He and his wife last voted in Florida on Nov. 6, 2018.
