16/07/2025
By Kay Noel
Newborns in the US from 2025 to 2028 are eligible for a $1,000 government grant to open a special savings account designed to give children a financial head start.
These "Trump accounts," established as part of a tax and spending plan signed into law by President Trump, combine elements of individual retirement accounts.
The unique feature is the federal government's seed money contribution. With approximately 3.6 million births in the US each year, the program could cost several billion dollars annually.
Initially, the accounts had restrictions on spending before age 30, but changes during Senate negotiations shifted the focus towards retirement savings.
Experts, like Madeline Brown from the Urban Institute, find this puzzling, given the existence of other retirement accounts. "It's hard to determine the program's goal," she said, questioning its purpose.
