GOP Plan Offers $1,000 to Every Newborn — Will It Make a Difference?
A new House GOP proposal backed by Donald Trump would give every U.S.-born baby a $1,000 investment account, dubbed a “Trump Account” starting in 2025. The money, growing tax-deferred, could be used at age 18 for college, a home down payment, or starting a business.
The idea echoes “baby bonds,” aimed at narrowing the wealth gap, but unlike programs in California and Connecticut, this version wouldn’t target low-income families. Instead, it would be universal (excluding some children of immigrants without qualifying parental work status).
At a White House event, Trump called the plan a “pro-family initiative” that would give young Americans a head start in life. But at just $1,000 per child, the benefit is modest, projected to grow to about $3,570 by adulthood with a 7% return.
Critics argue the proposal is symbolic at best and doesn’t address urgent needs. “It is upside down,” said economist Darrick Hamilton, who pioneered the baby bonds concept. Unlike his vision, which would give larger sums to children in poverty, Trump Accounts could further entrench inequality, Hamilton said.
Supporters like investor Brad Gerstner say the plan could reconnect young Americans with capitalism. But many advocates point out the contradiction: while proposing long-term savings accounts, Trump and Republicans are also pushing cuts to food assistance, Medicaid, and education aid, services that poor families depend on now.
“Health care, food, housing, those are the real priorities,” said Shimica Gaskins of End Child Poverty California. “Not a $1,000 promise 18 years from now.”
