Trump proposes $1,000 investment accounts for every newborn in sweeping pro-family plan
US President Donald Trump has announced a new policy to create $1,000 government-funded investment accounts for all American babies born between 2025 and 2029.
Dubbed ‘Trump Accounts,’ the program will offer tax-deferred investment accounts tied to U.S. stock market performance. At a White House roundtable with executives from Goldman Sachs, Uber, Dell Technologies and other firms, President Trump called it “a pro-family policy that empowers every new American citizen with a head start in life.”
“For every U.S. citizen born after December 31, 2024, and before January 1, 2029, the federal government will contribute a one-time $1,000 deposit into an investment account. It’s a very big idea, and it’s going to be a very big success,” President Trump said.
The accounts, managed by guardians until adulthood, will allow up to $5,000 in additional private contributions annually. Several CEOs pledged funding to support employees’ children, including Michael Dell of Dell Technologies and Uber’s Dara Khosrowshahi.
House Speaker Mike Johnson hailed the accounts as “transformative policy,” emphasizing Republican focus on economic opportunity. The initiative passed the House along party lines but faces Senate opposition over its $2.4 trillion estimated cost and accompanying Medicaid cuts that could leave 11 million Americans without health coverage by 2034, according to the Congressional Budget Office.
Funding comes from controversial welfare reductions and a new remittance tax – measures critics say hurt low-income families. Trump remained defiant: “We’re going to give America’s babies the best start in history. It’s bold, smart, and fully paid for through smart reforms.” The plan draws comparisons to the UK’s defunct Child Trust Fund but may offer fewer tax advantages than existing 529 college plans, financial advisers warn.
