President Donald Trump has unveiled a major new initiative: government-funded investment accounts for American newborns. Dubbed “Trump accounts,” the program is part of his broader “big, beautiful bill,” which includes sweeping tax reforms and social policy changes.
Under the proposal, every U.S. baby born between Jan 1, 2025, and Dec 31, 2028 would receive a $1,000 government-funded, tax-deferred account tied to the stock market. Parents could contribute up to $5,000 annually. Over time, these accounts could grow significantly, offering children a financial head start. Trump called it a “pro-family initiative” designed to build generational wealth. Speaker Mike Johnson praised it as “bold and transformative.” An estimated 15–16 million children could benefit, costing about $15 billion in federal funds.
However, the plan has drawn criticism, including from Elon Musk, Trump’s former efficiency czar, who said it would undo cost-cutting efforts. Funding comes in part from proposed Medicaid and SNAP cuts, sparking backlash from Democrats and some moderates.
Other parts of the bill include:
- No tax on tips for service workers
- Tax-free overtime
- Auto loan interest deductions (for U.S.-made cars)
- $200 silencer tax reduction
- Child tax credit increase to $2,500
Many provisions are temporary, set to expire by 2028 or 2029, except for the Trump accounts, which would be permanent once created.
Critics warn of market volatility and long-term costs, while supporters say the plan encourages investment and economic mobility. The bill faces a tough path in the Senate, where debate continues over its scope and impact.