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President Donald Trump is promoting a provision in his tax and immigration bill that would create a Trump account for every American baby born during his second term. These tax-deferred investment accounts would begin with $1,000 in government funding and allow families to contribute up to $5,000 per year. The program would cover U.S. citizens born between January 2025 and December 2028 and offer a new way for parents to save for their children’s future.

Private Sector Endorsement Gains Momentum

Trump introduced the initiative during a White House roundtable with business leaders, lawmakers, and administration officials. Dell CEO Michael Dell announced his company would match the federal contribution for every employee’s child. Other executives from Uber, Robinhood, Goldman Sachs, and ServiceNow expressed support for the concept, though most stopped short of making specific pledges.

The Trump accounts would be tied to index funds that track the overall U.S. stock market. Guardians would manage the investments until the child turns 18, at which point funds could be used for education, housing, or other adult milestones. The program is intended to support family savings and promote long-term financial planning from birth.

Trump Accounts: A Signature Feature of the One Big Beautiful Bill

The Trump account proposal is embedded in a sweeping tax and immigration bill that recently passed the House. Supporters say the program would modernize family assistance by replacing short-term benefits with long-term investment. House Speaker Mike Johnson described it as a “transformative” policy that aligns with Republican goals of reducing bureaucracy while helping working families build assets.

The administration rebranded the initiative from its original “MAGA account” name and has presented it as a centerpiece of the “One Big Beautiful Bill.” The goal is to secure Senate approval before the July 4 recess. However, fiscal conservatives have raised concerns over the package’s impact on federal debt.

$2.4 Trillion Debt Projections and Policy Tradeoffs

The Congressional Budget Office estimates that the broader legislation could add $2.4 trillion to the national debt over ten years. Although the Trump account itself is a small component, critics argue the entire bill relies too heavily on cuts to Medicaid and food assistance to justify the new programs. Some lawmakers have warned that the tax incentives and investment accounts would mostly benefit families already able to save.

Financial analysts have noted that similar tools already exist, such as 529 plans, and questioned whether Trump accounts offer meaningful advantages. With lower contribution caps and a narrower range of uses, the accounts may be less flexible than other options. Still, advocates point to the psychological impact of providing every newborn with a financial start, especially when paired with employer support.

Precedents Abroad and Cautious Optimism

The Trump administration has compared the proposed program to similar efforts in other countries. The United Kingdom’s Child Trust Fund, active from 2002 to 2011, seeded accounts for newborns but was discontinued due to budget constraints. Singapore’s Baby Bonus Scheme continues to offer matched savings and parental incentives, with more consistent funding and regulation.

At the roundtable, Trump said the program would allow young Americans to “get a big jump on life” and praised the private sector for backing the concept. Supporters said the account structure encourages financial literacy and long-term thinking, especially when corporations like Dell and Goldman Sachs step in to contribute.

The fate of the Trump account program depends entirely on the larger bill’s passage in the Senate. Republicans are divided, with some pushing to extract the account plan into standalone legislation. Trump has rejected that idea, insisting the full bill must pass to unlock the funding and legal authority required to launch the program.

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