$1000 for every US baby? Here's what we know about ‘Trump’s Savings Accounts’ plan for American babies

US President Donald Trump has announced a federal program as he proposes a government-funded $1000 investment account for American babies, calling it "Trump savings accounts".

Unofficially known as "Trump Accounts" or "MAGA Accounts", the program is part of a broader tax-cut package that recently passed the House.

Trump made the announcement at a White House roundtable, in presence of over a dozen CEOs, including from Uber, Goldman Sachs and Dell Technologies.

Trump’s Savings Accounts plan explained

Every US citizen born after December 31, 2024 and before January 1, 2029, the federal government will make a one-time contribution of $1,000 into a tax-deferred account that will track the overall stock market, US President Trump said.

The accounts will be controlled and operated by the baby's guardian and will allow additional private contributions of up to $5000 annually.

Calling it a "pro-family initiative", Trump said that it will help millions of Americans harness the strength of our economy to lift up the next generation.

Mike Johnson, the House speaker, was also present at the roundtable. He called it a "bold, transformative policy" that gives every eligible American child a financial head start from day one.

While Trump's "Big Beautiful Bill" has cleared the House, it is still pending to go through the Senate.

The Congressional Budget Office (CBO) issued a report last week warning that the “Big Beautiful Bill" is projected to add $2.4 trillion to the national debt over the next decade.

Trump has been optimistic about the returns, as he said that the beneficiaries would "really be getting a big jump on life, especially if we get a little bit lucky with some of the numbers and the economies into the future”.