Children born during the second term of President Donald Trump will receive a “transformative” investment account under a proposal in the president’s tax bill.
Sen. Ted Cruz, R-Texas, the man credited with coming up with the idea, says that the plan will not only benefit future generations of Americans but will also help bolster investment in the “American free enterprise system.”
“There are many Americans who don’t own stocks or bonds, are not invested in the market, and may not feel particularly invested in the American free enterprise system. This will give everyone a stake,” the senator explained to Semafor.
Trump: “We’re creating a special Trump account for every newborn child, starting them off with a $1,000 credit to be invested over the course of their life. A little baby is born, they’re gonna start off with $1,000 … they have a chance to be very rich. It’s gonna be very cute… pic.twitter.com/fAG6Uqonxg
— Aaron Rupar (@atrupar) May 30, 2025
Originally called the “money account for growth and advancement,” the newly-dubbed “Trump accounts” would contain $1000 per newborn that would accumulate interest over time as the child grows up. This will allow the account to accumulate value by “investing in equities while friends, family and employers are free to contribute up to $5,000 annually.”
Then, 18 years later, when the child finally becomes an adult, the account could contain tens of thousands of dollars to help jumpstart the next phase of life. The money could be used to further education, purchase a home, or start a business, all thanks to the “miracle of compound interest.”
“The first draft of the House’s tax legislation would tax distributions from the account at the capital gains rate, according to a committee summary. It also differs sharply from previous Democratic proposals for ‘baby bonds’ proposals that would not allow investments in the private equities markets,” Semafor reported.
“That is just a government program, where this is very much designed to get the next generation to invest in the market,” Cruz explained.
“You see a lot of young people who in public opinion surveys, say they have a negative view of capitalism and they embrace socialism,” he continued. “And what is powerful about this is, when every child has invested, it’s no longer an abstract idea.”
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Sierra Marlee is a millennial whose hunger for the truth in a world of fake news has led her to write. Marlee also contributes to BizPac Review.
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