Donald Trump has unveiled a plan that could hand $1,000 to every newborn, a gift that, according to the White House, can make future millionaires of babies born during his current presidency. But eligible families won’t see a dime unless they follow the required steps to claim the cash.
Called the “Trump Accounts,” this savings program was signed into law earlier this year as part of a broader tax package. The plan is being promoted as a way to give every child – regardless of background – a boost toward financial independence.
Here’s a comprehensive look at President Donald Trump’s plan, how it works, who qualifies, and how families can take advantage of it.
What are Trump Accounts?
The Trump Account isn’t just a lofty promise – it’s a structured financial tool designed to help every qualifying child access a better future.
When parents open one of these accounts for their baby – born between Jan. 1, 2025, and Dec. 31, 2028 – the U.S. Treasury will contribute $1,000. That money is then invested in U.S. stock market index funds, chosen and managed by private firms that must cap their fees at 0.10% annually.
‘Could grow to as much as $1.9 million’
Parents are allowed to invest up to $2,500 each year using pretax income, with the total combined yearly contributions – including those from employers, extended family, and other private sources – capped at $5,000 per child.
However, any money added by government agencies or charitable organizations is exempt from that annual limit.
Children will not be able to withdraw any of this money until they turn 18, and the funds can only be used “for specific purposes, such as paying tuition, starting a business or making a down payment on a home,” AP reports.
“If fully funded and left untouched,” the White House reports that the money “could grow to as much as $1.9 million by age 28.”
Who qualifies for the $1,000?
To receive the full $1,000 government contribution, the child must:
- Be a U.S. citizen
- Have a Social Security number
- Be born between Jan. 1, 2025, and Dec. 31, 2028
Any parent or guardian – regardless of their immigration status – can open a Trump Account for a qualifying child. But the account must be opened in order to trigger the $1,000 deposit. If no account is created, no money is given.
Older kids
Kids born before 2025 aren’t eligible for the $1,000 federal deposit, but parents can still set up accounts for anyone under 18. These accounts follow the same rules, including the option to contribute up to $2,500 a year in pretax income. Some of these children – specifically those 10 or younger in select ZIP codes with a median income of $150,000 or less – may still qualify for the Dell Foundation’s $250 boost.
According to People, Trump said the “landmark gift” made by philanthropists Michael and Susan Dell was “truly one of the most generous acts in the history of our country. He also claimed that he’ll “be doing it, too.”
Opening a Trump Account
Trump Accounts won’t begin accepting contributions until July 2026. However, parents can start preparing by filling out IRS Form 4547, which as of Dec. 4 were not yet available.
According to the official Trump Accounts page, more information will be made Dec. 17.
What critics say
“This is a pro-family initiative that will help millions of Americans harness the strength of our economy to lift up the next generation. And they’ll really be getting a big jump on life,” the POTUS said.
But critics argue the gift is hardly a jump – doing nothing for children during their most vulnerable early years, when poverty hits the hardest. They point to deep cuts made by the Trump administration and congressional Republicans to key safety-net programs like Medicaid and food assistance, slashed in the very same tax package that introduced these accounts.
For struggling families, opponents say, the promise of future wealth doesn’t replace immediate needs stripped away by those funding rollbacks.
Favors wealthy families
Also, it’s designed to benefit the wealthiest families, especially those able to max out yearly contributions.
“The structure favors families who already have the means to save. It’s regressive by design,” Michelle Dallafior, senior vice president of tax and budget at First Focus for Children, told CNN.
If no contributions are made to the one-time $1,000 deposit – and it grows at 7% annually – it would be worth around $3,570 – by the time the child turns 18. It’s a decent start, but modest compared to what well-funded accounts could earn.
Still, for families who act, the Trump Accounts could offer something many children in America don’t have: a financial foundation when they reach adulthood.
What do you think of the $1,000 baby payout? Please let us know what you think of Trump’s plan and then share this story so we can hear from others!
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