Trump Unveils '$1,000 Savings Account' For Every Baby Born During His Second Term

8 months ago 15

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Last Updated:June 10, 2025, 22:02 IST

The proposal mandates the Treasury Department to fund the $1,000 initial investment, with newborns automatically enrolled in the program.

US President Donald Trump unveiled a new federal program proposing government-funded $1,000 investment accounts for American babies, which he called ‘Trump savings accounts’. The US President said that the initiative is one of the “most important" components of his new proposed bill, despite immediate warnings from the Congressional Budget Office regarding its impact on national debt.

What Is ‘Trump’s Savings Accounts’ Plan?

During a White House roundtable- that included Dell CEO Michael Dell, Goldman Sachs CEO David Solomon and Uber CEO Dara Khosrowshahi- Donald Trump revealed specifics of the proposed savings accounts. These would be tax-deferred investment accounts designed to track overall stock market performance, benefiting children born between January 1, 2025, and December 31, 2028, he 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 market," Donald Trump said.

The proposal mandates the Treasury Department to fund the $1,000 initial investment, with newborns automatically enrolled in the program. These accounts would be administered by parents or legal guardians, allowing for an additional private investment of up to $5,000. Donald Trump said that the initiative is “a pro-family initiative that will help millions of Americans harness the strength of our economy to lift up the next generation."

Legislative Hurdles For Donald Trump’s Bill

While the “Big Beautiful Bill" has cleared the House, its journey through the Senate is expected to face stiff competition. The Congressional Budget Office (CBO) issued a report last week warning that the “Big Beautiful Bill" is projected to add $2.4 trillion to the national debt over the next decade- indicating that such an increase would necessitate cuts to existing federal programs, including Medicaid and food assistance.

The ‘Trump savings accounts’ cannot be passed as a standalone program and would require the successful passage of the broader bill.