In a bold and politically charged move, US President Donald Trump has unveiled a new provision in his sweeping tax reform—officially titled the “One Big Beautiful Bill”—that proposes creating “Trump Accounts” for all American babies born during his current term.
The concept, essentially a baby bond program, would provide a $1,000 government-funded investment into a stock market-linked account for each newborn citizen between January 1, 2025, and December 31, 2028.
“These Trump Accounts will give every American baby a big jump on life,” said the president during a White House roundtable, describing the initiative as a pro-family, pro-child economic push that he claims will not burden taxpayers in the long run.
The accounts, first floated under the name “MAGA Accounts,” will be private property managed by the child’s legal guardians until the child turns 18.
The structure is simple but significant. Every eligible child will receive a $1,000 contribution into a tax-deferred investment account tied to the overall stock market—most likely through index funds or mutual funds.
Parents will also have the option to add up to $5,000 tax-free per year to these accounts. The funds can be withdrawn at age 18 for specific uses such as higher education, a home down payment, or starting a business. Any non-qualified withdrawals would be taxed at a higher rate, and the full balance becomes accessible at age 30.
Although the program would initially cost over $3 billion annually—given the U.S. sees around 3.6 million births each year—Trump claims the long-term benefits outweigh the costs. However, critics argue the initiative is a thinly veiled attempt to push through an otherwise controversial tax and spending bill.
The House of Representatives passed the bill by a single vote, and it now faces a tough battle in the Senate, with resistance from both moderate Republicans and fiscal conservatives.
Unlike baby bond programs in states like California, Connecticut, and Washington, D.C., which target lower-income families, Trump’s version makes no distinction based on income. Proponents say this universality ensures political appeal, while detractors argue it fails to address the wealth gap directly.
Still, President Trump has positioned the plan as a counter-narrative to criticism that his bill disproportionately benefits the wealthy.
The White House has secured verbal support from major corporations like Dell Technologies, Salesforce, Uber, and Goldman Sachs to promote the program. Dell CEO Michael Dell remarked, “With these accounts, children will be much more likely to graduate from college, start businesses, or buy homes.”
Despite the promotional efforts, financial analysts have called the proposal symbolically powerful but economically limited.
Bloomberg estimates that, with an average annual return of 7 per cent, the $1,000 could grow to around $3,570 by the time the child turns 18—a meaningful but not transformative amount in today’s economic landscape.
As Trump intensifies lobbying efforts to pass the ‘One Big Beautiful Bill,’ the idea of Trump Accounts is gaining traction both as a policy tool and a campaign message.
Whether it passes legislative scrutiny or not, the president has once again captured headlines with a policy designed to leave a lasting legacy on America’s next generation.
