WASHINGTON: US President Donald Trump unveiled a federal program on Monday providing $1,000 government-funded investment accounts for American babies and terming it “Trump savings account” and the president deemed it as one of the “most important” components of his second term. The Trump savings accounts are part of Trump’s controversial “Big Beautiful Bill” which passed the House of Representatives last month.
During a White House roundtable with Dell CEO Michael Dell, Goldman Sachs CEO David Solomon and Uber CEO Dara Khosrowshahi, Trump revealed the details of the savings account which would be tax-deferred investment accounts tracking stock market performance for children born between 2025 and 2029.
“For every US citizen born after December 31, 2024, before January 1, 2029, the federal government will make a one-time contribution of $1,000 into a tax-deferred account that will track the overall stock market,” Trump said, The Guardian reports.
Details of Trump Savings Account
The proposal for a Trump savings account called for the Treasury Department to fund $1,000 in investment for children and the newborns will be automatically enrolled in the program. The savings account will be administered by parents or guardians and it would allow an additional up to $5,000 private investment.
Trump called it “a pro-family initiative that will help millions of Americans harness the strength of our economy to lift up the next generation”. The Trump savings accounts, part of the “Big, Beautiful Bill” passed the House but would face stiff competition in the Senate. It can’t be passed as a separate program and would require to get through the bill proposed by Trump.
A Congressional budget office last week said the “Big, Beautiful Bill” is bound to add $2.4 trillion in national debt over the next decade, as the federal government will have to cut medicaid and food assistance programs.
Agencies