Donald Trump Considers Giving $1,000 Savings Accounts to Parents, Guardians

Donald Trump

United States President Donald Trump is considering establishing a savings account for parents and guardians, which would provide $1,000 with possible additional contributions that could reach up to $5,000 per year.

If the bill is signed into law, parents and guardians will have access to a tax-deferred, low-cost index fund account that will track the overall stock market for every child. When these kids become adults, they are then able to take out the money to pay for things such as college or a down payment on a home.

Trump Savings Accounts

The Republican leader said that the savings account would "contribute to the lifelong success of millions of newborn babies." In supporting the bill, Trump said the accounts will be open for additional private contributions every year, which can come from family, friends, parents, employers, churches, private foundations, and others.

The president calls it a "pro-family initiative" that would assist millions of Americans in taking advantage of the strength of the economy to support the next generation. It also gives the latter a big jump on life, according to ABC News.

Additionally, House Speaker Mike Johnson said that the savings accounts are "transformative" in helping American families. He added that it is a bold policy that gives eligible children a financial head start right from the beginning.

The house speaker said that Republican lawmakers are proud to be the ones who have always supported life and families as well as prosperity and opportunity. Johnson noted that Trump accounts give the next generation a better shot at success.

The $1,000 savings accounts will be applicable for newborns whose births are between Jan. 1, 2025, and Jan. 1, 2029. White House press secretary Karoline Leavitt said the passage of the "One Big Beautiful Bill" will change the lives of working and middle-class families living in America, Yahoo News reported.

Supporting the Next Generation

Several CEOs from various companies, including Dell Technologies, are set to invest billions of dollars into the Trump accounts for the children of their employees. Trump praised the executives' donations and called them the "greatest business minds we have today."

The latest program passed the House as part of a massive budget bill but is now facing tougher opposition from some Senate Republicans. One thing to note is that the accounts cannot be implemented as a standalone program and depend on the "One Big Beautiful Bill" passing.

One major issue that some lawmakers see is that the Congressional Budget Office last week found that the bill would add $2.4 trillion to the national debt over the next decade. Furthermore, it would cut Medicaid and food assistance programs, as per The Guardian.

Originally published on parentherald.com