One Big Beautiful Bill: Why Is Donald Trump Pushing Cash For American Babies?
President Trump proposed "Trump Accounts" under his tax cut bill, offering $1,000 tax-exempt investment accounts for babies born between 2025-2028.
In a significant move aimed at enhancing the lives of American babies, US President Donald Trump has proposed a new initiative under his tax cut bill which he calls 'One Big Beautiful Bill".
President Trump talked about a provision in his tax and spending bill that proposes opening investment accounts for every American baby born during his current presidential term. Referred to as 'Trump Accounts", the new tax-exempt investment accounts will benefit American babies belonging to families of all income levels.
Trump Accounts: One-Time Contribution Of $1,000
The new plan is a part of the broader tax reform package, and it aims to provide a one-time contribution of $1,000 from the federal government to a tax-deferred account for each American baby born between January 1, 2025, and December 31, 2028.
These accounts will be designed to track the overall stock market and will be managed by the child's guardians until the child turns 18. The program also has the provision for parents to contribute up to $5,000 annually to the account, with contributions being tax-free.
When Can Child Avail Funds?
Earlier on Monday, the US president explained the benefits of the program during a roundtable, noting that the funds will be invested in mutual or index funds tied to the stock market's performance, offering the potential for growth over time. The money would only be available when the child turns 18 and could be used for a down payment on a home, education, or starting a small business. However, the money would be subject to higher taxes if used for other purposes.
When the child turns 30, the full balance of the account would be available for withdrawal. This initiative focuses on helping young Americans build wealth and secure their financial future, though the long-term impact remains uncertain. The plan, initially called 'MAGA Accounts," has drawn mixed reactions, but it represents a significant shift in how the federal government might support future generations.
Estimated Budget For Proposed Plan
As per estimates, US witnesses about 3.6 million births each year so the cost could exceed $3 billion annually, the Washington Post reported. So far, no cost estimates have been released for the program by the Republicans.
First Published:
June 11, 2025, 09:58 IST
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
United News of India
22 minutes ago
- United News of India
Rahul questions PM Modi's silence on Trump's repeated ceasefire claims
New Delhi, July 23 (UNI) Leader of Opposition in the Lok Sabha (LoP) Rahul Gandhi today again hit out at Prime Minister Narendra Modi, questioning his silence over US President Donald Trump's repeated assertions of brokering a ceasefire deal between India and Pakistan. Speaking to the media in the Parliament House complex, Gandhi raised concerns about the government's foreign policy, national security, and the handling of Operation Sindoor. 'What statement will Prime Minister Modi give… that Trump brokered the ceasefire? He can't say that. But the truth is — Trump did broker the ceasefire, and the whole world knows it,' Gandhi said. He pointed out that Donald Trump has claimed on at least 25 occasions that he was instrumental in brokering the ceasefire deal. 'Who is Trump to broker a ceasefire? That's not his job. Yet Prime Minister Modi hasn't responded even once. This is the truth, and you can't run away from it,' he said while slamming the Modi government for refusing to rebut Trump's statements. Accusing the Modi government of evading critical national issues, the Rae Bareli MP said, 'There are many pressing issues that we want to discuss — from national defence and the defence industry to Operation Sindoor. Those who call themselves patriots have disappeared. The Prime Minister has not made a single public statement'. 'On one hand, the government says Operation Sindoor is ongoing. On the other, it is celebrating victory. And meanwhile, Trump keeps saying he got the ceasefire done. Clearly, something is fishy,' he said. Alleging that India's foreign policy has weakened under the Modi government, Gandhi claimed, 'Not a single country has come forward in our support. The Modi government has torn apart our foreign policy'. UNI RBE AAB
The Hindu
22 minutes ago
- The Hindu
Amazon shuts down Shanghai AI research lab: Report
Amazon is shutting down its Shanghai artificial intelligence lab, the Financial Times reported on Wednesday. Reuters could not immediately confirm the report. Amazon did not immediately respond to a request for comment outside regular business hours. Amazon's decision to shut the lab comes amidst rising tensions between Washington and Beijing, with the U.S. increasing its scrutiny of American companies operating in China. Wang Minjie, a scientist in the Shanghai lab, said his team was "being dissolved due to strategic adjustments amid US-China tensions," the newspaper said, citing a post on WeChat. Amazon Web Services (AWS) set up its Shanghai Lab in 2018. While the headcount at the AWS Shanghai research lab is unclear, the FT report said, AWS at its peak had more than 1,000 staff in China. The report comes as the tech giant slashes jobs globally, joining a growing list of firms, including Microsoft and Meta, who have announced layoffs this year as they increase their reliance on artificial intelligence.
The Hindu
22 minutes ago
- The Hindu
Punnapra-Vayalar — The blood-red uprising that shaped Kerala's Left
The story so far V.S. Achuthanandan, the communist icon who passed away at the age of 101, was one of the last living flagbearers of the historic Punnapra-Vayalar uprising of 1946 in Kerala. The movement, which played a critical role in shaping Kerala's political landscape, was the crucible that forged his lifelong commitment to justice and resistance. What was Punnapra-Vayalar uprising? The Punnapra-Vayalar uprising of 1946 was a mass revolt by workers and peasants against the autocratic Travancore monarchy and the autocratic rule of Diwan C.P. Ramaswami Iyer. Rooted in the coastal belt of Alappuzha, particularly in the villages of Punnapra and Vayalar, the movement was spearheaded by the nascent Communist Party of India, which mobilised coir workers, agricultural labourers and tenants who were bearing the brunt of feudal exploitation and starvation in the wake of World War Two. At the heart of the protest was rising discontent against the Diwan's proposal to keep Travancore an independent nation, separate from the Indian Union, an idea modelled on the American presidential system. The communists were objected to this 'American model', coining the slogan: 'Throw the American model into the Arabian Sea!' A revolt fuelled by suffering The economic hardship was acute. Food shortages, black market, inflation, unemployment and starvation plagued the people. Landlords, backed by the State, ruled with impunity. In the face of such cruelty, the coir workers' union and the communist party began building ward committees and organising local resistance in Cherthala and Ambalapuzha taluks. By 1945, a general strike was held across Alappuzha, Cherthala and Muhamma, demanding basic rights and rations. The response was swift and brutal in the form of martial law and police repression. The flashpoint On 25 October 1946, as Travancore prepared to declare independence with a U.S.-style constitution, unrest was already boiling over. The All Travancore Trade Union Congress had called for a general strike starting October 22. Thousands of workers took to the streets, marching toward the reserve police camp at Punnapra, demanding freedom. When the protesters reached the camp, the officer-in-charge gave the order to open fire. Several demonstrators were shot dead. The officer and five policemen were also killed in the clashes that followed. Outraged, over 1,000 communists in Vayalar retaliated with crude spears (varikuntham, as it is locally called) carved from arecanut tree stems and killed several police personnel. The Diwan responded by declaring martial law. By October 27, the Travancore army, with naval support, had surrounded Vayalar. Outgunned, the rebels resisted fiercely but were eventually crushed. The exact toll remains uncertain, but hundreds of communists lost their lives in the brutal crackdown. Achuthanandan's role Achuthanandan, then a 23-year-old coir worker and newly minted Communist, was deeply involved in organising workers ahead of the uprising. Though arrested before the final clashes, he played a crucial role in mobilising resistance. After the uprising, V.S. went underground. Escaping to Kottayam through the backwaters, he trekked 30 km to reach Poonjar as instructed by Travancore Communist Party acting secretary K.V. Pathrose. In Poonjar, he hid in the homes of sympathisers but was soon caught and subjected to intense torture. He was presumed dead and nearly dumped in the forest. But he survived and was treated in Pala hospital before being transferred to the Poojappura Central Jail in Thiruvananthapuram. Aftermath and legacy Though the uprising was violently suppressed, it dramatically shifted Travancore's political trajectory. It symbolised the awakening of class consciousness among the oppressed and laid the ideological foundation for the rise of Left politics in the State. Less than a year later, Diwan C.P. Ramaswami Iyer resigned and left the State after an attempt on his life. This struggle also led to the beginning of a process through which the two princely States of Travancore and Cochin were first made into what was known as the Travancore-Cochin State. Seven years later, they were merged with the Malabar district of the British-ruled Madras presidency to form the new, united linguistic State of Kerala. In 1957, following the first-ever elections to the Kerala Legislative Assembly, the first democratically communist government came to power under the leadership of E.M.S. Namboodiripad. The communists regard Punnapra-Vayalar uprising as not isolated. It was part of a broader wave of militant actions across Kerala — Karivellur, Kavumbai and Thillankeri in Malabar saw similar uprisings. But the resistance in Alappuzha stood out for its intensity, sacrifice, and impact. The slogan 'the blood of Vayalar is our blood' became a rallying cry for generations of Left activists. A life lived in the spirit of resistance For Achuthanandan, the uprising was a turning point that charted the rest of his life. As a trade unionist, Leader of the Opposition, Chief Minister and elder statesman of the Left, he carried the spirit of Punnapra-Vayalar into every phase of his public life. With his passing, Kerala also looses a bridge to its revolutionary past. But the legacy set by V.S. has ensured that the fire lit in 1946 lives on in Kerala's politics, memory and conscience.
