President Donald Trump announced a bold new plan to give every American newborn a head start in life: a $1,000 tax-free investment account, automatically created at birth. The proposal is a centerpiece of his sweeping “One Big Beautiful Bill,” aimed at supercharging economic opportunity for future generations.
Dubbed “Trump Accounts,” the initiative would provide every baby born between January 1, 2025, and December 31, 2028, with a federally seeded account tied to long-term market growth. Parents and guardians could contribute up to $5,000 per year, and the funds would grow tax-deferred until adulthood.
“It’s about giving every child—rich or poor—a stake in the American Dream,” Trump said during a White House roundtable with business leaders and House Speaker Mike Johnson. “We’re building generational wealth, not generational dependence.”
Major corporations, including firms from Wall Street, Silicon Valley, and the energy sector, have already pledged billions in voluntary matching funds for employees’ children, with the Trump administration framing it as a public-private partnership to invest in America’s youth.
While some critics complain that $1,000 won’t significantly reduce poverty, supporters argue that the accounts are meant to teach financial responsibility and ownership from birth—not replace existing support systems. Trump emphasized that this was a pro-capitalism, pro-family alternative to endless welfare cycles.
The “Trump Accounts” are just one element of the broader bill, which includes middle-class tax cuts, new limits on welfare eligibility, and reforms to foreign remittance flows. The House narrowly passed the legislation along party lines, and the Senate is now preparing for a high-stakes vote.
The Congressional Budget Office projects that the full bill could cost over $2 trillion—but supporters argue that long-term economic growth, reduced dependency, and enhanced labor participation will offset the price.
In Trump’s words: “We’re not just giving away money. We’re giving every child a piece of the country they’re born into.”