President Donald Trump on Monday highlighted a proposal for a new, federally funded benefit that would automatically create investment accounts for every baby born in the U.S. over the four years of his second term.
Once dubbed “MAGA Accounts” and now referred to as “Trump Accounts,” the program is included in the massive reconciliation bill passed by the House and currently before the Senate. It would provide $1,000 for every U.S. citizen born after December 31, 2024, and before January 1, 2029, with the money sitting in a tax-deferred account indexed to the broader stock market.
The initial funding for the accounts would come from the U.S. Treasury, and parents would be able to add up to $5,000 per year once the accounts are established. Withdrawals could begin starting at age 18, subject to capital gains taxes.
The Joint Committee on Taxation estimates that the cost of the program would be roughly $17 billion over 10 years.
“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 at an event at the White House. “And they’ll really be getting a big jump on life, especially if we get a little bit lucky with some of the numbers and the economies into the future.”
Trump was joined at the White House by business leaders and senior lawmakers, including House Speaker Mike Johnson and the CEOs of Goldman Sachs, Uber, and Dell Technologies.