Trump announces $1,000 government-funded accounts for American babies
At a White House roundtable with over a dozen CEOs, including from Uber, Goldman Sachs and Dell Technologies, Trump relayed the details of 'Trump accounts' – tax-deferred investment accounts tracking stock market performance for children born between 2025 and 2029.
'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.
The accounts will be controlled by guardians and allow additional private contributions up to $5,000 annually. Trump called it 'a pro-family initiative that will help millions of Americans harness the strength of our economy to lift up the next generation'.
CEOs from major companies including Michael Dell, Dara Khosrowshahi of Uber, David Solomon of Goldman Sachs, and Vladimir Tenev of Robinhood committed billions for employees' children's accounts. Trump praised the executives as 'really the greatest business minds we have today' who are 'committed to contributing millions of dollars to the Trump account'.
Mike Johnson, the House speaker, also at the roundtable, championed the program, saying: '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.'
The program passed the House as part of a massive budget bill but faces stiffer Senate Republican resistance over the broader package. The accounts cannot be implemented as a standalone program and depend entirely on passage of what Trump calls the 'one big, beautiful bill' that is 'among the most important pieces of legislation in our country's history', claiming it's 'fully funded through targeted reforms' including welfare changes and a proposed remittance tax.
However, the congressional budget office last week found the bill would also add $2.4tn to the national debt over the next decade while cutting Medicaid and food assistance programs. The CBO analysis showed the bill, which passed the House by a single vote and no Democratic support, would leave 10.9 million more Americans without healthcare by 2034.
The treasury-funded accounts, previously called 'Maga ccounts' resemble existing 529 college plans but with lower contribution limits – leading some financial advisers to say the Trump accounts may not offer the best investment incentives.
The move is also not without precedent the United Kingdom operated a similar Child Trust Fund with government seed funding from 2002-2011 before discontinuing the program, while Singapore runs the Baby Bonus Scheme that includes government-matched savings accounts for children.
Trump was optimistic about returns, saying 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'.
Johnson warned that failure to pass the legislation would result in 'the largest tax increase in American history' and pushed for swift congressional action on what he called 'pro-growth legislation' that would 'help every single American'.
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