Newborns Set to Get $1,000 in Government-Funded Investment Under Trump Plan

US President Donald Trump on Monday unveiled a sweeping federal initiative that would provide every American baby born between 2025 and 2029 with a $1,000 government-funded investment account. Dubbed the “Trump Accounts,” the tax-deferred accounts are designed to track stock market performance and allow families to contribute up to $5,000 annually.

Trump announced the program during a high-profile White House roundtable attended by CEOs of major corporations including Uber, Goldman Sachs, Dell Technologies, and Robinhood, who pledged billions in support for their employees’ children.

“For every US citizen born after December 31, 2024, and 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,” Trump said, describing the initiative as “a pro-family investment in the next generation.”

The proposal, embedded within a broader legislative package Trump calls the “big beautiful bill,” has already passed the House by a razor-thin margin. House Speaker Mike Johnson, who joined Trump at the event, hailed the policy as “bold and transformative,” claiming it gives American families a real stake in the economy from day one.

But despite the fanfare, the plan faces significant hurdles in the Senate and growing scrutiny from fiscal watchdogs. The Congressional Budget Office (CBO) recently projected that the bill would add $2.4 trillion to the national debt over the next decade. It also found that the bill’s funding sources—such as welfare reforms, Medicaid cuts, and a controversial remittance tax—could leave nearly 11 million Americans without healthcare by 2034.

Critics argue that while the Trump accounts mimic college savings plans like the 529 model, they offer less flexibility and lower investment incentives. Financial advisers warn the accounts could underperform and may not serve the best interests of low-income families—many of whom could see benefits slashed under the same legislation.

Trump, however, remained bullish. “These accounts are going to give kids a real jump on life,” he said. “And if the economy goes the way I think it will, they’re going to be very happy adults.”

The program also mirrors efforts in other countries. The UK once operated a similar Child Trust Fund scheme, while Singapore continues to offer a Baby Bonus matched savings system.

Still, the fate of Trump’s latest populist policy hinges on Senate negotiations over the broader budget bill—a measure he claims is one of the most consequential in U.S. history. Speaker Johnson warned that failure to pass it could result in “the largest tax increase in American history.”