Latest news with #TrumpAccounts'
Yahoo
5 days ago
- Politics
- Yahoo
Talking ‘Trump accounts' and mocking Democrats, Vance offers preview of how GOP will message the 'big, beautiful bill'
WEST PITTSTON, Pennsylvania — President Donald Trump's 'One Big Beautiful Bill' is all about supporting the children — American children. That was Vice President JD Vance's message Wednesday as he rallied at a family-owned machine shop in this purple Pennsylvania manufacturing town, kicking off what is expected to be a summer of intense Republican efforts to sell the party's domestic legislation ahead of the midterms. 'We couldn't get a single Democrat to vote for $1,000 for every newborn baby in the United States of America,' Vance said, referring to a provision in the law that establishes 'Trump Accounts' for babies with Social Security numbers born between 2025 and 2028. 'I realized the problem: If we had made that $1,000 accessible not to newborn American babies but to illegal aliens, I think we could have got the Democrats' vote.' The line drew a laugh from many in the roughly 100-person crowd. Vance's message has echoes of the 2024 Trump campaign attack on former Vice President Kamala Harris, which suggested that she was for 'they/them,' a reference to her support for transgender rights, while Trump was 'for you.' And it comes as Democrats seek to portray the law's cuts to Medicaid as a betrayal of the working-class voters Vance was speaking to Wednesday, the voters who both parties believe are crucial to their success next November. Vance, who cast the bill's tie-breaking vote in the Senate earlier this month, once said everything else in the bill was 'immaterial' compared to the money it allotted to bolstering the Trump administration's sweeping mass deportation agenda. But in West Pittston, the vice president combined his zeal for deportations with his family-first agenda. Throughout his short political career, Vance has promoted policies that he believes support women having more babies and frequently discussed prioritizing his family, which he has taken on multiple official and personal trips (last weekend the second family vacationed at Disneyland). The vice president has long been an ardent critic of illegal immigration, and one of the White House's most forceful supporters of ending birthright citizenship. So during Vance's brief trip to Northeastern Pennsylvania, he framed the OBBB as saying no to immigrants and yes to American families. Vance highlighted how the law's expansion of short-term job training programs would 'give young people more options.' He touted the law's government savings because 'I don't want to pass on to my kids and grandkids this giant debt volume.' And he celebrated that the law 'stops taxpayer benefits from going to illegal aliens.' The Congressional Budget Office projects the law to boost the deficit by $3.4 trillion, though most Republicans disagree with that assessment. 'Whether you're working at Don's Machine [Shop] or you're the vice president of the United States … it's all in the service of giving our kids the incredible opportunities that we've had,' the vice president said. 'It's about believing that the next generation is going to have a better life than we had because we worked our tails off to give it to them. That's the American dream, my friends. That's what it's all about.'
NBC News
13-06-2025
- Business
- NBC News
Who benefits from Republicans' 'big beautiful' bill depends largely on income. Children are no exception
House reconciliation legislation, also known as the One, Big, Beautiful Bill, includes changes aimed at helping to boost family's finances. Those proposals — including $1,000 investment 'Trump Accounts' for newborns and an enhanced maximum $2,500 child tax credit — would help support eligible parents. Proposed tax cuts in the bill may also provide up to $13,300 more in take-home pay for the average family with two children, House Republicans estimate. 'What we're trying to do is help hardworking Americans who are trying to provide for their families and make ends meet,' House Speaker Mike Johnson, R-La., said during a June 8 interview with ABC News' 'This Week.' Yet the proposed changes, which emphasize work requirements, may reduce aid for children in low-income families when it comes to certain tax credits, health coverage and food assistance. Households in the lowest decile of the income distribution would lose about $1,600 per year, or about 3.9% of their income, from 2026 through 2034, according to a June 12 letter from the Congressional Budget Office. That loss is mainly due to 'reductions in in-kind transfers,' it notes — particularly Medicaid and the Supplemental Nutrition Assistance Program, or SNAP, formerly known as food stamps. 20 million children won't get full $2,500 child tax credit House Republicans have proposed increasing the maximum child tax credit to $2,500 per child, up from $2,000, a change that would go into effect starting with tax year 2025 and expire after 2028. The change would increase the number of low-income children who are locked out of the child tax credit because their parents' income is too low, according to Adam Ruben, director of advocacy organization Economic Security Project Action. The tax credit is not refundable, meaning filers can't claim it if they don't have a tax obligation. Today, there are 17 million children who either receive no credit or a partial credit because their family's income is too low, Ruben said. Under the House Republicans' plan, that would increase by 3 million children. Consequently, 20 million children would be left out of the full child tax credit because their families earn too little, he said. 'It is raising the credit for wealthier families while excluding those vulnerable families from the credit,' Ruben said. 'And that's not a pro-family policy.' A single parent with two children would have to earn at least $40,000 per year to access the full child tax credit under the Republicans' plan, he said. For families earning the minimum wage, it may be difficult to meet that threshold, according to Ruben. In contrast, an enhanced child tax credit put in place under President Joe Biden made it fully refundable, which means very low-income families were eligible for the maximum benefit, according to Elaine Maag, senior fellow at the Urban-Brookings Tax Policy Center. In 2021, the maximum child tax credit was $3,600 for children under six and $3,000 for children ages 6 to 17. That enhanced credit cut child poverty in half, Maag said. However, immediately following the expiration, child poverty increased, she said. The current House proposal would also make about 4.5 million children who are citizens ineligible for the child tax credit because they have at least one undocumented parent who files taxes with an individual tax identification number, Ruben said. Those children are currently eligible for the child tax credit based on 2017 tax legislation but would be excluded based on the new proposal, he said. New red tape for a low-income tax credit House Republicans also want to change the earned income tax credit, or EITC, which targets low- to middle-income individuals and families, to require precertification to qualify. When a similar requirement was tried about 20 years ago, it resulted in some eligible families not getting the benefit, Maag said. The new prospective administrative barrier may have the same result, she said. More than 2 million children's food assistance at risk House Republican lawmakers' plan includes almost $300 billion in proposed cuts to the Supplemental Nutrition Assistance Program, or SNAP, through 2034. SNAP currently helps more than 42 million people in low-income families afford groceries, according to Katie Bergh, senior policy analyst at the Center on Budget and Policy Priorities. Children represent roughly 40% of SNAP participants, she said. More than 7 million people may see their food assistance either substantially reduced or ended entirely due to the proposed cuts in the House reconciliation bill, estimates CBPP. Notably, that total includes more than 2 million children. 'We're talking about the deepest cut to food assistance ever, potentially, if this bill becomes law,' Bergh said. Under the House proposal, work requirements would apply to households with children for the first time, Bergh said. Parents with children over the age of 6 would be subject to those rules, which limit people to receiving food assistance for just three months in a three-year period unless they work a minimum 20 hours per week. Additionally, the House plan calls for states to fund 5% to 25% of SNAP food benefits — a departure from the 100% federal funding for those benefits for the first time in the program's history, Bergh said. States, which already pay to help administer SNAP, may face tough choices in the face of those higher costs. That may include cutting food assistance or other state benefits or even doing away with SNAP altogether, Bergh said. While the bill does not directly propose cuts to school meal programs, it does put children's eligibility for them at risk, according to Bergh. Children who are eligible for SNAP typically automatically qualify for free or reduced school meals. If a family loses SNAP benefits, their children may also miss out on those benefits, Bergh said. Health coverage losses would adversely impact families Families with children may face higher health care costs and reduced access to health care depending on how states react to federal spending cuts proposed by House Republicans, according to the Center on Budget and Policy Priorities. The House Republican bill seeks to slash approximately $1 trillion in spending from Medicaid, the Children's Health Insurance Program and Affordable Care Act marketplaces. Medicaid work requirements may make low-income individuals vulnerable to losing health coverage if they are part of the expansion group and are unable to document they meet the requirements or qualify for an exemption, according to CBPP. Parents and pregnant women, who are on the list of exemptions, could be susceptible to losing coverage without proper documentation, according to the non-partisan research and policy institute. Eligible children may face barriers to access Medicaid and CHIP coverage if the legislation blocks a rule that simplifies enrollment in those programs, according to CBPP. In addition, an estimated 4.2 million individuals may be uninsured in 2034 if enhanced premium tax credits that help individuals and families afford health insurance are not extended, according to CBO estimates. Meanwhile, those who are covered by marketplace plans would have to pay higher premiums, according to CBPP. Without the premium tax credits, a family of four with $65,000 in income would pay $2,400 more per year for marketplace coverage.
Yahoo
10-06-2025
- Business
- Yahoo
What Parents Should Know About the $1,000 ‘Trump Accounts'
The proposed program would create investment accounts for children born as early as the beginning of this year. Credit - Markus Scholz—picture-alliance/dpa/AP Images Almost every baby born in America would get a $1,000 investment account from the government under a program championed by President Donald Trump. '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'll really be getting a big jump on life,' Trump said Monday at a roundtable at the White House with top business executives. Dubbed 'Trump Accounts' by the Administration, the proposal is a provision in Trump's 'One Big Beautiful Bill,' the sweeping tax and spending package now making its way through Congress. The bill passed the House with the provision included, but the package has faced resistance in the Senate. If the legislation passes, the proposed program would create accounts for children born as early as the beginning of this year. Here's what parents should know about the program. The 'Trump Accounts' created for newborns under the program would be tax-deferred investment accounts privately held by children's guardians. The government would make a one-time contribution of $1,000 to each account, according to the White House. The accounts would then 'track a stock index and allow for additional private contributions of up to $5,000 per year,' the White House said. The program '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,' the White House said. The accounts would be available for children born in the country after Dec. 31, 2024 and before Jan. 1, 2029. In order to open an account, at least one of the child's parents or guardians would need to have a Social Security number with the authorization to work in the U.S., The Washington Post reported. At the age of 18, the child would be able to withdraw up to half of the money in the account, according to Forbes. When they turn 25, they would be able to access the full account balance for certain purposes, such as small business loans and higher education. Only when the account beneficiary turns 30 would they gain full control of all the funds for any purpose. The Milken Institute, a nonprofit, nonpartisan think tank, estimated in a report released in March that an initial government grant of $1,000 invested in a broad-based equity index fund of U.S. companies would, on average, grow to $8,000 after 20 years, $69,000 after 40 years, and $574,000 after 60 years. Lawmakers have not shared a projected cost for Trump Accounts. But the Post estimated that, since there are roughly 3.6 million babies born in the country each year, the cost of the program could be greater than $3 billion a year. Some economists and policy experts have expressed concern that the program could exacerbate economic inequality. Trump Accounts are similar to 'baby bond' programs that operate in California, Connecticut, and Washington, D.C. But those state programs were intended to minimize the wealth gap by offering support for children from low-income households, whereas the Trump program would be available to people regardless of their socioeconomic status. As a result, experts have noted that families from higher income households would be able to contribute more to the account, on top of the initial $1,000, and therefore have more funds accumulated in the account. Some financial experts have also voiced skepticism of the program, saying the benefits are small compared to other tax-shielded savings options, such as 529 college savings accounts. Others have pointed out that the proposal is coming at the same time that Republican lawmakers are proposing significant cuts to social safety net programs, such as Medicaid and the Supplemental Nutrition Assistance Program. 'Feel like low-income families would prefer their assistance buying groceries not get cut, but that's just me,' Brendan Duke—the senior director for federal budget policy at the nonpartisan research and policy institute, Center on Budget and Policy Priorities—said in a post on X, in response to a post about Trump Accounts. Contact us at letters@
Time Magazine
10-06-2025
- Business
- Time Magazine
What Parents Should Know About the $1,000 ‘Trump Accounts' for Babies
Almost every baby born in America would get a $1,000 investment account from the government under a program President Donald Trump promoted on Monday. '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'll really be getting a big jump on life,' Trump said at a roundtable at the White House with top business executives. Dubbed 'Trump Accounts' by the Administration, the proposal is a provision in Trump's 'One Big Beautiful Bill,' the sweeping tax and spending package now making its way through Congress. The bill passed the House with the provision included, but the package has faced resistance in the Senate. If the legislation passes, the proposed program would create accounts for children born as early as the beginning of this year. Here's what parents should know about the program. What are 'Trump Accounts'? The 'Trump Accounts' created for newborns under the program would be tax-deferred investment accounts privately held by children's guardians. The government would make a one-time contribution of $1,000 to each account, according to the White House. The accounts would then 'track a stock index and allow for additional private contributions of up to $5,000 per year,' the White House said. The program '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,' the White House said. Who would be eligible? The accounts would be available for children born in the country after Dec. 31, 2024 and before Jan. 1, 2029. In order to open an account, at least one of the child's parents or guardians would need to have a Social Security number with the authorization to work in the U.S., The Washington Post reported. How would withdrawing the money work? At the age of 18, the child would be able to withdraw up to half of the money in the account, according to Forbes. When they turn 25, they would be able to access the full account balance for certain purposes, such as small business loans and higher education. Only when the account beneficiary turns 30 would they gain full control of all the funds for any purpose. The Milken Institute, a nonprofit, nonpartisan think tank, estimated in a report released in March that an initial government grant of $1,000 invested in a broad-based equity index fund of U.S. companies would, on average, grow to $8,000 after 20 years, $69,000 after 40 years, and $574,000 after 60 years. How much would the program cost? Lawmakers have not shared a projected cost for Trump Accounts. But the Post estimated that, since there are roughly 3.6 million babies born in the country each year, the cost of the program could be greater than $3 billion a year. What would the impact of the program be? Some economists and policy experts have expressed concern that the program could exacerbate economic inequality. Trump Accounts are similar to 'baby bond' programs that operate in California, Connecticut, and Washington, D.C. But those state programs were intended to minimize the wealth gap by offering support for children from low-income households, whereas the Trump program would be available to people regardless of their socioeconomic status. As a result, experts have noted that families from higher income households would be able to contribute more to the account, on top of the initial $1,000, and therefore have more funds accumulated in the account. Some financial experts have also voiced skepticism of the program, saying the benefits are small compared to other tax-shielded savings options, such as 529 college savings accounts. Others have pointed out that the proposal is coming at the same time that Republican lawmakers are proposing significant cuts to social safety net programs, such as Medicaid and the Supplemental Nutrition Assistance Program. 'Feel like low-income families would prefer their assistance buying groceries not get cut, but that's just me,' Brendan Duke—the senior director for federal budget policy at the nonpartisan research and policy institute, Center on Budget and Policy Priorities— said in a post on X, in response to a post about Trump Accounts.
Mint
10-06-2025
- Business
- Mint
Donald Trump is pushing cash for all American babies. What are ‘Trump Accounts'? Explained
US President Donald Trump wants to make a significant but limited investment in newborn babies through his 'Big Beautiful Bill'. On Monday, the president touted a provision in his tax cut bill that proposes opening investment accounts for all American babies born during Trump's current term as President. These accounts have been dubbed "Trump Accounts", and families of all income levels could receive them. The 'Trump Accounts' pilot program is included in the 'One Big Beautiful Bill'. Simply put, these are new tax-exempt investment accounts to benefit all American children. An earlier version of the bill called them MAGA Accounts, referring to the president's Make America Great Again campaign slogan. During a roundtable on Monday, Trump said, "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 accounts will be private property controlled by the child's guardians. This provision means that every US citizen born between the start of 2025 and the end of 2028 would receive $1,000 initially from the federal government in a tax-deferred account. The accounts would, over the course of a child's first 18 years, be linked to a mutual fund or index fund tied to the performance of the stock market. The initiative further allows parents to contribute additionally — up to $5,000 tax-free each year to "Trump Accounts". The money would only be accessible to the child upon reaching adult status at 18. At age 18, children could withdraw the money to put toward a down payment for a home, education or to start a small business. If the money is used for other purposes, it'll be taxed at a higher rate. The full balance would be available at age 30, USA Today reported. With about 3.6 million babies born in the US each year, the cost could exceed $3 billion annually, the Washington Post reported. Republicans have yet not released any cost estimates for the program. Amid criticism from several people, including former aide Elon Musk, Trump is trying hard to get his 'Big, Beautiful' tax and spending bill approved by the Senate. On Monday, Trump worked the phones and took to social media to try to sway Republican holdouts on his multi-trillion-dollar tax bill. Trump further promoted the program as a pro-family, pro-child initiative at a time when his administration and congressional Republicans are facing criticism over cuts that the tax, spending and immigration bill would make to programs like Medicaid and the Supplemental Nutrition Assistance Program. It's feared that the tax and spending cut package will add more than $3 trillion to the US national debt over the next decade. The House of Representatives approved the bill by one vote last month. It now faces opposition from both moderates and ultra-conservatives in the Senate. Many in favour of this provision say that it doesn't distinguish between the rich and the poor. The Trump program is similar to 'baby bond' programs run in California, Connecticut and Washington, D.C, according to the Washington Post. The report says that while those local programs were created to reduce the wealth gap by supporting children in need or lower-income families, Trump accounts will be made available to Americans regardless of their socioeconomic status. Moreover, USA Today reported that the program serves as a counter to Democratic arguments that the bill helps the nation's wealthiest Americans. Meanwhile, a statement from the White House said, "The One Big Beautiful Bill will change the lives of middle-class families across America" — 'together with historic tax cuts, an increased child tax credit, higher wages, and monumental economic growth.' President Trump said on Monday that the mega bill would 'make it possible for countless American children to have a strong start at life at no cost to the American taxpayer.' Meanwhile, Dell CEO Michael Dell said, "With these accounts, children will be much more likely to graduate from college, to start a business, to buy a home, and achieve lifelong financial stability.' Amid the buzz over "Trump Accounts", Donald Trump gathered corporate leaders at the White House Monday to highlight a provision in his tax bill that would deposit $1,000 into an investment account for babies born in the next few years. Dell Technologies, Salesforce, Uber and Goldman Sachs were among the companies the White House said would be participating. 'They'll really be getting a big jump on life, especially if we get a little bit lucky with some of the numbers and the economy," the US President said.
