"Trump Accounts" Launch With $1,000 Newborn Deposits

In July 2025, the Trump administration launched "Trump Accounts," tax-advantaged savings accounts for children modeled loosely on IRAs, created under the tax and spending package signed earlier that summer. The federal government deposits $1,000 into an account for each U.S.-citizen baby with a Social Security number born between January 1, 2025 and December 31, 2028; funds are inaccessible until the child turns 18. Parents can contribute up to $5,000 annually, and employers up to $2,500.

The program was marketed as a pro-family, pro-savings initiative, but drew scrutiny over its branding and limited scope compared to more direct forms of family support such as expanded childcare subsidies or paid leave.

Economists and critics argued that a one-time, locked-up deposit does little for families facing immediate costs like childcare and housing, calling it a symbolic gesture that generates favorable headlines without addressing the deeper affordability pressures facing new parents.