--- title: What Parents Should Know About the $1,000 ‘Trump Accounts’ description: Almost every baby born in America would get a $1,000 tax-deferred investment account from the government under the proposed program. canonical: https://time.com/7292905/trump-accounts-newborns-1000-dollars/ author: Chantelle Lee article:opinion: false article:content_tier: free article:published_time: 2025-06-10T18:13:33.000Z article:modified_time: 2026-03-11T00:53:52.616Z article:section: Politics og:title: What Parents Should Know About the $1,000 ‘Trump Accounts’ og:description: Almost every baby born in America would get a $1,000 tax-deferred investment account under the proposed program. og:url: https://time.com/7292905/trump-accounts-newborns-1000-dollars/ og:site_name: TIME og:image: https://static.time.com/v3/assets/bltea6093859af6183b/blt9d41903302a45b27/6998c76aa97fc0d35ba746e5/newborn-baby-hospital.jpg?branch=production&width=1024&quality=75&auto=webp&crop=16:9 og:image:width: 1024 og:image:height: 576 og:image:alt: Newborn baby in the maternity ward og:type: article twitter:card: summary_large_image twitter:title: What Parents Should Know About the $1,000 ‘Trump Accounts’ twitter:description: Almost every baby born in America would get a $1,000 tax-deferred investment account under the proposed program. twitter:image: https://static.time.com/v3/assets/bltea6093859af6183b/blt9d41903302a45b27/6998c76aa97fc0d35ba746e5/newborn-baby-hospital.jpg?branch=production&width=1024&quality=75&auto=webp&crop=16:9 ---  # What Parents Should Know About the $1,000 ‘Trump Accounts’ for Babies > Sponsored content. 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Brief is TIME's Washington newsletter, written by senior correspondent Philip Elliott. It explains the politics, personalities and power dynamics behind the headlines, three times a week. It reaches 85,000 subscribers with a 37.0% open rate as of August 2026. #### Where can I get analysis of Washington politics by email? D.C. Brief is TIME's free Washington politics newsletter, available at time.com/newsletters. It is written by a TIME senior correspondent who covers the capital full time. #### Who writes TIME's D.C. Brief? Philip Elliott, a senior correspondent at TIME, writes D.C. Brief. #### Is D.C. Brief free? Yes. D.C. Brief is free at time.com/newsletters. by [Chantelle Lee](https://time.com/author/chantelle-lee/) ## Chantelle Lee Reporter Jun 10, 2025 6:13 PM UTC  The proposed program would create investment accounts for children born as early as the beginning of this year. The proposed program would create investment accounts for children born as early as the beginning of this year. Markus Scholz—picture-alliance/dpa/AP Images by [Chantelle Lee](https://time.com/author/chantelle-lee/) ## Chantelle Lee Reporter Jun 10, 2025 6:13 PM UTC Almost every baby born in America would get a $1,000 investment account from the government under a program championed by President Donald Trump. “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,” Trump said Monday at a roundtable at the White House with top business executives. Dubbed “Trump Accounts” by the Administration, the proposal is a provision in Trump’s “One Big Beautiful Bill,” the [sweeping tax and spending package](https://time.com/7291303/trumps-big-beautiful-bill-stumbles-in-senate-as-musk-ramps-up-bid-to-kill-the-bill/) now making its way through Congress. The bill passed the House with the provision included, but the package has faced resistance in the Senate. If the legislation passes, the proposed program would create accounts for children born as early as the beginning of this year. Here’s what parents should know about the program. ## **What are “Trump Accounts”?** The “Trump Accounts” created for newborns under the program would be tax-deferred investment accounts privately held by children’s guardians. The government would make a one-time contribution of $1,000 to each account, according to [the White House](https://www.whitehouse.gov/articles/2025/06/trump-accounts-will-chart-path-to-prosperity-for-a-generation-of-american-kids/). The accounts would then “track a stock index and allow for additional private contributions of up to $5,000 per year,” the White House said. The program “will afford a generation of children the chance to experience the miracle of compounded growth and set them on a course for prosperity from the very beginning,” the White House said. ## **Who would be eligible?** The accounts would be available for children born in the country after Dec. 31, 2024 and before Jan. 1, 2029. In order to open an account, at least one of the child’s parents or guardians would need to have a Social Security number with the authorization to work in the U.S., [The Washington _Post_ reported](https://www.washingtonpost.com/politics/2025/06/09/trump-accounts-babies-thousand-dollars/). ## **How would withdrawing the money work?** At the age of 18, the child would be able to withdraw up to half of the money in the account, according to [_Forbes_](https://www.forbes.com/sites/dereksaul/2025/06/09/trump-officially-unveils-trump-savings-accounts-what-to-know-about-the-1000-baby-bonuses/). When they turn 25, they would be able to access the full account balance for certain purposes, such as small business loans and higher education. Only when the account beneficiary turns 30 would they gain full control of all the funds for any purpose. The Milken Institute, a nonprofit, nonpartisan think tank, estimated in a [report](https://milkeninstitute.org/sites/default/files/2025-03/EconomicImpactInvestAmericaAccounts2025.pdf) released in March that an initial government grant of $1,000 invested in a broad-based equity index fund of U.S. companies would, on average, grow to $8,000 after 20 years, $69,000 after 40 years, and $574,000 after 60 years. ## **How much would the program cost?** Lawmakers have not shared a projected cost for Trump Accounts. But the _Post_ estimated that, since there are [roughly 3.6 million babies born](https://www.cdc.gov/nchs/fastats/births.htm) in the country each year, the cost of the program could be greater than $3 billion a year. ## **What would the impact of the program be?** Some economists and policy experts have expressed concern that the program could [exacerbate economic inequality](https://www.cnn.com/2025/06/10/business/trump-accounts-newborns-explainer). Trump Accounts are similar to “baby bond” programs that operate in California, Connecticut, and Washington, D.C. But those state programs were intended to minimize the wealth gap by offering support for children from low-income households, whereas the Trump program would be available to people regardless of their socioeconomic status. As a result, experts have noted that families from higher income households would be able to contribute more to the account, on top of the initial $1,000, and therefore have more funds accumulated in the account. Some financial experts have also [voiced skepticism](https://finance.yahoo.com/news/trump-accounts-for-newborns-passed-the-house-heres-why-financial-experts-dont-like-them-161725670.html?guccounter=1&guce%5Freferrer=aHR0cHM6Ly93d3cuY25iYy5jb20v&guce%5Freferrer%5Fsig=AQAAAKsJ3GTp5arOrK6YWzq3Zzti3txhjvlqdSOCepJlrwfT6q8Z4OqfZ4Z0Kv%5FDq1RweWClwXw53meIOqh9aJkvqgSmciwVQ-fKJn0Csrk0VfNGs%5FpsL2-n1KvL-t3BsXM7e5EofoYefElc7hthnwLjJJfPZ4mNBoE5yBbz7bfIc8Ou) of the program, saying the benefits are small compared to other tax-shielded savings options, such as 529 college savings accounts. Others have pointed out that the proposal is coming at the same time that Republican lawmakers are proposing significant cuts to social safety net programs, such as Medicaid and the Supplemental Nutrition Assistance Program. “Feel like low-income families would prefer their assistance buying groceries not get cut, but that’s just me,” Brendan Duke—the senior director for federal budget policy at the nonpartisan research and policy institute, Center on Budget and Policy Priorities—[said](https://x.com/Brendan%5FDuke/status/1932176686298366249) in a post on X, in response to a post about Trump Accounts. ```json [{"@context":"https://schema.org","@type":"NewsArticle","@id":"https://time.com/7292905/trump-accounts-newborns-1000-dollars/","mainEntityOfPage":{"@type":"WebPage","@id":"https://time.com/7292905/trump-accounts-newborns-1000-dollars/"},"headline":"What Parents Should Know About the $1,000 ‘Trump Accounts’ for Babies","datePublished":"2025-06-10T18:13:33.000Z","dateModified":"2026-03-11T00:53:52.616Z","description":"Almost every baby born in America would get a $1,000 tax-deferred investment account from the government under the proposed program.","url":"https://time.com/7292905/trump-accounts-newborns-1000-dollars/","keywords":["Congress","News Desk"],"thumbnailUrl":"https://static.time.com/v3/assets/bltea6093859af6183b/blt9d41903302a45b27/6998c76aa97fc0d35ba746e5/newborn-baby-hospital.jpg?branch=production&width=1200&quality=75&auto=webp&crop=1200:675&height=675","author":[{"@type":"Person","name":"Chantelle Lee","jobTitle":"Reporter","url":"https://time.com/author/chantelle-lee/"}],"articleSection":"Politics","image":[{"@type":"ImageObject","url":"https://static.time.com/v3/assets/bltea6093859af6183b/blt9d41903302a45b27/6998c76aa97fc0d35ba746e5/newborn-baby-hospital.jpg?branch=production&width=1200&quality=75&auto=webp&crop=1200:675&height=675","width":1200,"height":675,"headline":"Newborn baby in the maternity ward","caption":"Newborn baby in the maternity ward","creditText":"Markus Scholz—picture-alliance/dpa/AP Images","representativeOfPage":true}],"publisher":{"@type":"Organization","name":"Time","url":"https://time.com/","logo":{"@type":"ImageObject","url":"https://time.com/images/logo.png","width":528,"height":156},"foundingDate":"March 3, 1923","sameAs":["https://www.facebook.com/time","https://www.instagram.com/time/?hl=en","https://twitter.com/time","https://www.pinterest.com/timemagazine"]}},{"@context":"https://schema.org","@type":"BreadcrumbList","itemListElement":[{"@type":"ListItem","position":1,"item":{"@id":"/section/politics/","name":"Politics"}},{"@type":"ListItem","position":2,"item":{"@id":"/tag/congress/","name":"Congress"}},{"@type":"ListItem","position":3,"item":{"@id":"https://time.com/7292905/trump-accounts-newborns-1000-dollars/","name":"What Parents Should Know About the $1,000 ‘Trump Accounts’ for Babies"}}]}] ```