On Monday, former President Donald Trump introduced a federal program that will provide $1,000 government-funded investment accounts for American babies. The initiative, supported by major business leaders who have pledged billions in additional contributions, is tied to what Trump calls “the big beautiful bill.”
During a White House roundtable attended by more than a dozen CEOs from companies such as Uber, Goldman Sachs, and Dell Technologies, Trump detailed the new “Trump accounts.” These tax-deferred investment accounts will track stock market performance for children born between 2025 and 2029.
“For every U.S. citizen born after December 31, 2024, and before January 1, 2029, the federal government will make a one-time $1,000 contribution into a tax-deferred account that follows the overall stock market,” Trump explained.
Guardians will manage the accounts, which will also allow private contributions of up to $5,000 annually. Trump described the program as “a pro-family initiative that will help millions of Americans leverage our strong economy to support the next generation.”
CEOs including Michael Dell, Dara Khosrowshahi of Uber, David Solomon of Goldman Sachs, and Vladimir Tenev of Robinhood pledged billions in contributions for accounts benefiting employees’ children. Trump praised them as “some of the greatest business minds we have today,” committed to adding millions more to the program.
House Speaker Mike Johnson, also present at the event, endorsed the plan, calling it “a bold, transformative policy that gives every eligible American child a financial head start from day one.” He added, “Republicans are proud to uphold our long-standing support for life, families, prosperity, and opportunity.”
The program was approved by the House as part of a larger budget bill but faces resistance in the Senate. The accounts cannot be implemented independently and rely on the passage of the broader legislation, which Trump refers to as “one big, beautiful bill,” funded by welfare reforms and a proposed remittance tax.
However, a recent analysis by the Congressional Budget Office (CBO) found that the bill would increase the national debt by $2.4 trillion over the next decade while cutting Medicaid and food assistance programs. The CBO also projected that 10.9 million more Americans would lose healthcare coverage by 2034 if the bill passes. The bill passed the House by a narrow margin with no Democratic votes.
The new accounts, previously called “MAGA accounts,” resemble 529 college savings plans but with lower contribution limits, leading some financial experts to question whether they offer the best investment benefits.
Similar programs exist elsewhere: the United Kingdom ran a Child Trust Fund with government seed money from 2002 to 2011, and Singapore has a Baby Bonus Scheme with government-matched savings accounts for children.
Trump expressed optimism about the program’s potential returns, saying beneficiaries “will really get a big jump on life, especially if the economy performs well in the future.”
Johnson warned that failure to pass the bill could lead to “the largest tax increase in American history,” urging Congress to act quickly on what he called “pro-growth legislation” that would “help every single American.”
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