• Trump Offers Newborns a great start in life with Trump Accounts that provide babies with a $1,000 government deposit to start long-term savings.
• Families and others can contribute up to $5,000 yearly to grow the account tax-free.
• Funds can be used for education, home purchase, or business, with withdrawals starting at age 18 under specific rules.

Congress is working on a new plan that could give every eligible newborn in the U.S. a $1,000 financial head start. This plan is part of a bigger legislative package called the One Big Beautiful Bill. The goal is to help families build long-term financial security for their children. Lawmakers want to open special savings accounts, called Trump Accounts, for babies born between 2025 and 2029. These accounts will receive an initial government deposit of $1,000 to jumpstart the child’s savings. Families can add more money later, helping kids learn about managing money early in life.

Trump Accounts Aim to Build Wealth and Support Milestones

The main purpose of Trump Accounts is to encourage saving and investing from birth. The government will invest the initial money in U.S. stock funds to help it grow over time. This plan hopes to reduce wealth gaps by giving all children a chance to build savings. Parents, relatives, friends, and even employers can contribute up to \$5,000 per year to each account. This money grows tax-free until the child uses it for important life goals. The accounts focus on helping with higher education, buying a home, or starting a business. The plan also promotes financial education, homeownership, and entrepreneurship to support long-term success.

Clear Eligibility Rules for Trump Accounts

To qualify for a Trump Account, a child must meet three rules. First, the child must be born in the U.S. between January 1, 2025, and January 1, 2029. Second, the child must have U.S. citizenship and a valid Social Security number. Third, at least one parent must have a Social Security number to open and track the account. These rules ensure that the government correctly sets up and manages the accounts. Once a child qualifies, the U.S. Treasury opens the account automatically and deposits the \$1,000 seed money. This process requires no extra steps from families, making it easy to get started.

Families Can Add Money and Watch It Grow

The Trump Accounts encourage families to add money regularly. Contributions up to $5,000 per year come from parents, relatives, friends, or even employers. This money invests in diversified U.S. stock funds. Because the funds grow with the market, children can build substantial savings by adulthood. The accounts offer tax advantages, meaning families save more money on taxes compared to regular investment accounts. This tax benefit encourages long-term saving. It also makes Trump Accounts a useful tool for helping children pay for big expenses later in life.

How and When Can Children Use Trump Account Funds?

Children can start using their Trump Account money when they turn 18. However, at this age, they may withdraw only half of the account balance. They must use the money for approved expenses like college, vocational training, buying their first home, or starting a business. Withdrawals for these purposes receive lower tax rates called long-term capital gains taxes. Between ages 25 and 30, account holders can access the remaining balance for the same qualified expenses. After turning 30, people can spend the money on any purpose. But if they use it for non-approved reasons, normal income tax rates will apply. This structure encourages responsible spending while providing flexibility later in life.

What Trump Accounts Mean for the Future of Financial Security

If Congress passes this plan, Trump Accounts could transform how children start their financial lives. The automatic $1,000 deposit gives every eligible newborn a fair chance to save and grow wealth. Families will have tools to help children pay for education, buy homes, or launch businesses. This plan promotes saving habits early and supports economic mobility. It also aims to reduce wealth inequality by providing all children with a financial foundation. The proposal has support from both political parties, though the name “Trump Accounts” has sparked debate. Still, the idea of starting savings at birth has gained widespread attention as a way to strengthen America’s future.