President Donald Trump has announced a major new initiative called “Trump Accounts,” aiming to provide government-funded investment accounts for American babies. Under the proposal, every U.S. child born between January 1, 2025, and December 31, 2028, would receive a one-time $1,000 contribution into a tax-deferred account that tracks the stock market. Families could also contribute up to $5,000 annually.

Trump described it as a “pro-family” policy to help secure children’s financial futures. The program could affect up to 16 million children and involve over $15 billion in government spending.

House Speaker Mike Johnson praised the plan as a “bold, transformative policy” aligned with conservative values of family and opportunity. The initiative is part of Trump’s broader legislative agenda called the “big, beautiful bill.”

How the Trump Accounts Work

The Trump accounts would be tax-deferred, meaning investment gains aren’t taxed until withdrawal—similar to 401(k)s and IRAs. Each account starts with a $1,000 government contribution and tracks overall stock market performance.

With an average 7% annual return, the initial $1,000 could grow to nearly $3,900 in 20 years. Families can also add up to $5,000 per year, potentially building accounts worth hundreds of thousands of dollars by the time children reach adulthood. The plan reflects Republican support for private market investment and long-term wealth growth.