Donald Trump has announced a new proposal that’s grabbing a lot of attention: a $1,000 government-funded account for every baby born in the U.S. between January 1, 2025 and December 31, 2028. The idea is to give each child a financial head start, with the money growing over time through investments.
These accounts—unofficially being called “Trump Accounts”—would be automatically set up at birth, as long as at least one parent has a valid Social Security number. The $1,000 is just the beginning. Family members and even private companies would be allowed to contribute up to $5,000 per year to help the account grow. Over time, that money could turn into something substantial—tens or even hundreds of thousands of dollars, depending on how early and how much is added.
There are some conditions: kids could start using the funds at age 18 for things like college, buying a home, or starting a business. But they won’t get full access to the account until they turn 30.
Supporters say this could help young people build wealth early and reduce future debt. Some big-name companies have even pledged to match contributions for children of their employees. But critics are raising concerns. The biggest issue? Families with more resources will be able to grow these accounts far more than lower-income families, which could make inequality worse. Others worry about the cost—over $3 billion a year—and how it could affect funding for programs like Medicaid or food assistance.
Still, the plan is moving forward and could become part of a larger federal tax package soon. Lawmakers are debating it now, and we could see a final decision by July.
So, if you’re expecting a baby—or have plans to grow your family soon—it might be worth keeping an eye on this. It could be a once-in-a-generation chance to build a financial cushion from day one.
