The recently proposed “Trump accounts,” a key part of the “One Big Beautiful Bill Act,” are meant to give newborns a financial head start. The program, which would run as a five-year trial, would put $1,000 into individual accounts for every baby born in the U.S. between Jan. 1, 2025, and December 31, 2028, as long as both parents and the child have Social Security numbers.
This money must be invested in low-cost, diversified U.S. stock index funds, and withdrawals are not allowed until the child turns 18. At that point, the funds can be used for approved expenses like college, buying a home, or starting a small business.
