A brand-new savings plan could drop $1,000 straight into accounts for millions of American newborns, thanks to a sweeping new bill signed into law by Donald Trump.
Titled the One Big Beautiful Bill, this nearly 1,000-page budget reconciliation package was signed on July 4 and includes a headline-grabbing promise – automatic $1,000 deposits for children born between January 1, 2025, and December 31, 2028. Called the Trump Account, the program is designed to give every child born in that window a financial head start with zero income requirements or complicated applications.
All it takes is a Social Security number to set up the account. Once it’s done, the $1,000 gets deposited, and from there, parents or even employers can add up to $5,000 a year until the child turns 18. That’s a potential nest egg of nearly $100,000 before they’re legally an adult. It doesn’t end there, the government wants this money invested into low-cost mutual or exchange-traded funds to harness the power of compound growth over time. According to Trump, this isn’t just about savings. It’s about “fueling massive economic growth” and lifting up American families, with the long-term goal of supporting education, homeownership, and overall financial security.
The accounts are technically structured like traditional IRAs. That means once the child turns 18, the account follows the same rules as retirement accounts, including contribution limits and withdrawal penalties. But there’s flexibility, young adults will be able to tap into the money early, penalty-free, if it’s used for big life steps like college, a first home, or the birth of a child. Up to $2,500 a year contributed by an employer isn’t considered taxable income either, making this a win-win on multiple fronts.
Wall Street’s already backing the plan. Goldman Sachs CEO David Solomon called it a “core investment in future generations” and emphasized how crucial it is for kids to understand long-term investing. Experts say these Trump Accounts could be game-changers, especially since many Americans don’t start saving until their 30s. With two decades of potential growth, even that initial $1,000 could balloon into something major.
Aside from the Trump Accounts, the One Big Beautiful Bill includes major changes to other areas, too. Some taxpayers might see higher monthly payments, and a new adjustment to Social Security could boost annual benefits by as much as $12,000 for eligible Americans. That’s in addition to proposed tax cuts, military funding, and border security measures Trump laid out during the Republican National Convention on July 18.
This plan started out under the name “Money Accounts for Growth and Advancement,” or MAGA, but was recently rebranded to Trump Accounts. And while the name may have changed, the goal remains bold, giving kids a solid financial start and reminding families that the future can be built from day one.
Leo Cruz brings sharp insights into the world of politics, offering balanced reporting and analysis on the latest policies, elections, and global political events. With years of experience covering campaigns and interviewing world leaders, Leo ensures readers are always informed and engaged.
