Trump Unveils “Trump Accounts” for Newborn Americans: $1,000 Investment at Birth to Fuel Future Prosperity
by Worthy News Washington D.C. Bureau Staff
WASHINGTON, D.C. (Worthy News) – President Donald J. Trump announced a bold new initiative Monday aimed at giving every newborn American a financial head start: the creation of special “Trump Accounts” as part of the sweeping “One Big Beautiful Bill” currently moving through Congress.
The proposed policy would provide every U.S. citizen born between January 1, 2025, and December 31, 2028, with a government-seeded investment account worth $1,000 at birth. The accounts will be tax-deferred, track a major stock index, and allow annual private contributions of up to $5,000 from parents, relatives, employers, churches, and other organizations.
“This is a pro-family initiative that will help millions of Americans harness the strength of our economy to lift up the next generation,” Trump said during the Invest America Roundtable, surrounded by leading CEOs and lawmakers. “It’s about giving our children a stake in America’s future from the very first day.”
Children would gain partial access to their accounts at age 18 to fund education, training, or first-home purchases, with full access available at age 30. The goal, Trump said, is to promote long-term financial literacy and wealth-building through the power of compounding interest.
Corporate America Cheers the Move
The initiative received praise from industry leaders at the roundtable, including:
- Michael Dell, CEO of Dell Technologies: “This is a simple yet powerful way to transform lives. These accounts could make a lifetime of difference for millions.”
- David Solomon, CEO of Goldman Sachs: “This connects future generations directly to the vitality of America’s markets.”
- Dara Khosrowshahi, CEO of Uber: “It’s not just an account; it’s a launchpad that builds hope from day one.”
- Brad Gerstner, CEO of Altimeter Capital: “This makes America an ownership society again. Kids will feel like they’re in the game.”
Speaker of the House Mike Johnson echoed the enthusiasm: “Trump Accounts are all about setting the next generation up for success. It’s investing in Americans from the very beginning.”
How It Works — and Who Pays
The Trump Administration estimates the program will cost $3.6 billion over four years, assuming 3.6 million annual births. However, Trump insisted Monday that “there will be absolutely no cost to taxpayers,” citing a new 3.5% remittance tax on funds sent overseas as the primary funding mechanism.
Formerly dubbed “MAGA Accounts” — an acronym for “Money Accounts for Growth and Advancement” — the accounts were renamed by House Republicans before passage to avoid overt campaign branding.
Big Potential, But Not Without Skepticism
The potential payoff is significant. A $1,000 investment in the S&P 500 made in 2007 would be worth $5,590 today. Over 31 years, that figure jumps to more than $22,000, according to FactSet data.
Still, not everyone is convinced. Ann Reilley, CEO of Alpha Financial Advisors, said the accounts may not stack up favorably against established tax-advantaged options like 529 plans or Roth IRAs. “It seems like the administration is complicating things for no reason,” Reilley told Yahoo Finance.
Despite criticism, the administration remains optimistic about the program’s future. House Ways and Means Chair Jason Smith called it “a game-changer” for new parents: “Whether a child lives on a city block or a county road, this will make a real difference in their life.”
With bipartisan attention now focused on the bill’s final passage, Trump’s vision of a financially empowered generation is poised to take its first legislative steps.
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