When Donald Trump proposed his “Big Beautiful Tax Bill,” there were parts of it that were, at first, unclear to some Americans. Now, he has added another portion to the bill, which is a plan to give babies born after December 24, 2024, and before January 1, 2029, the chance to have a savings account that could earn hundreds of thousands of dollars in interest over the years. These accounts for babies are referred to as “Trump Accounts,” per Time magazine.
The accounts are designed to help give kids the right start financially. And, according to the magazine, parents can even contribute to their children’s accounts up to a certain amount each year. But the question many have is where the money is coming from to invest in the futures of what could be millions of infants born during Trump’s second term.
Trump – we are creating $1000 Trump accounts for every newborn baby pic.twitter.com/qHjpjSeZqH
— News Now (@NewsNowUS) May 30, 2025
The ‘Trump Accounts’ aren’t for babies born before the end of 2024.
It appears the accounts are meant to be an incentive for Americans to continue to expand their families and have more children. According to the White House, the government will invest a one-time deposit of $1,000 into the accounts of babies born within the given time period. From there, the money will track stock index, and the parents or guardians of the children with Trump Accounts can add up to $5,000 per year as well.
The goal, according to the White House website, is to help children financially right from the start. The website explains, of the Trump Accounts and of the Big Beautiful Bill, “Together with historic tax cuts, an increased child tax credit, higher wages, and monumental economic growth, the One Big Beautiful Bill will change the lives of middle-class families across America.”
Not all Americans see it that way, however. When a video of Trump explaining the provision of the bill was shared on X (formerly Twitter), someone commented to point out the flaws they see right off the bat.
“This is just QE disguised,” they person tweeted in reference to quantitative easing, which is introducing money into the country’s money supply by a central bank. “Why does the money have to be tied to the market? Why not just allow a tax free savings account with a dollar cap per year and if the government wants to provide a subsidy for the family then they can open the balance at $1000.”
Elsewhere on X, someone commented on another video of Trump talking about the Trump Accounts. The person wrote simply, “With what money?”
💰TRUMP ACCOUNTS – With a one-time government contribution of $1,000, Trump Accounts will set a generation of children on a course for prosperity from the beginning.
— The White House (@WhiteHouse) June 19, 2025
Check out how much the investment could grow ⬇️ pic.twitter.com/wgwCgxjXFV
The money for the ‘Trump Accounts’ could reach six figures in time.
Despite some criticisms of Trump Accounts right off the bat, before they have come to fruition, there is the possibility these accounts could generate hundreds of thousands of dollars for kids over the course of their respective lifetimes. According to the nonprofit Milken Institute, these accounts could grow up to as much as $574,000 after 60 years.
As some have wondered, though, where does Trump plan to get the money to be able to deposit a cool $1,0000 into a savings account for every single baby born to at least one US citizen parent with a social security number during his time in office? The Washington Post estimated that this plan could cost up to $3 billion per year if it goes into effect.
