US Babies to Get $1,000 Govt-Funded Accounts Under Trump’s New Savings Plan

Washington: US President Donald Trump has announced a new federal scheme offering a one-time $1,000 investment account for every American baby born between 2025 and 2029. Named the “Trump Savings Account”, the initiative is part of a larger policy package called the “Big Beautiful Bill”, which cleared the US House of Representatives last month.

Speaking at a White House roundtable on Monday with top CEOs from Dell, Goldman Sachs and Uber, Trump said this was one of the most important initiatives of his second term.“

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, according to The Guardian.

What is the Trump Savings Account?

The program aims to provide newborns with long-term savings linked to stock market growth. The Treasury Department will manage the initial $1,000 contribution, and parents or guardians can invest an additional $5,000 privately into the account. The money will remain tax-deferred, meaning families won’t pay tax on gains until withdrawal.

The idea, according to Trump, is to give every child a financial head-start.“This is a pro-family initiative that will help millions of Americans harness the strength of our economy to lift up the next generation,” he said.

Automatic Enrolment for Babies

Every eligible baby will be automatically enrolled in the savings scheme. Parents will have control over how the funds are managed until the child reaches adulthood. The account is designed to grow with the stock market, allowing families to benefit from long-term capital appreciation.

Although the proposal passed in the House as part of the broader “Big Beautiful Bill”, it is expected to face strong opposition in the Senate, especially from Democrats and budget hawks.

Last week, the Congressional Budget Office warned that the bill could add $2.4 trillion to the national debt over the next ten years. Critics also pointed out that to fund the savings accounts, the government may have to cut existing welfare programs such as Medicaid and food assistance.

Despite the criticism, Trump remains confident the bill reflects his administration’s focus on economic growth and family support.