THE AMERICA ONE NEWS
Jun 9, 2025  |  
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 | Remer,MN
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A group of high-profile CEOs joined President Donald Trump at the White House on Monday to showcase a proposed investment account program for newborn children, named after the president, as part of the Trump-backed budget bill, an initiative which would automatically grant a $1,000 investment account to newborn Americans.

Trump officially announced the “Trump savings accounts” at a Monday afternoon roundtable alongside Dell CEO Michael Dell, Goldman Sachs CEO David Solomon and Uber CEO Dara Khosrowshahi, deeming it one of the “most important” components of his second term.

The Trump savings accounts are a component of Trump’s “Big Beautiful Bill” which passed the House of Representatives last month.

The proposal calls for the Treasury Department to fund $1,000 in investment accounts for children born in the U.S. between Jan. 1, 2025 and Jan. 1, 2029.

Newborn children will be automatically enrolled in the program.

Parents or other account custodians can place up to an additional $5,000 in post-tax contributions annually into the accounts, which will be invested in index funds tracking the broader U.S. stock market.

The account beneficiary will be able to withdraw up to 50% of their balance beginning at age 18. That person will then have access to the full balance beginning at age 25 for qualified purposes, including small business loans and higher education, before gaining full control of the entire balance at 30 for any use. The Trump savings accounts will require post-tax contributions and tax withdrawals as either long-term capital gains or normal federal income, unlike the tax-free qualified disbursements from 529 higher education and Roth IRA retirement accounts.

The “Trump savings accounts” were previously known as “Money Accounts for Growth and Advancement” or “MAGA Accounts,” a nod to Trump’s “Make America Great Again” slogan, before Republican lawmakers in the House renamed them just before passing the bill.

$5,590. That’s how much a $1,000 investment in the SPDR S&P 500 exchanged traded fund trust ($SPY) made June 9, 2007 – exactly 18 years ago – would be worth today, according to FactSet data, including reinvested dividends. That same investment made 31 years ago would be worth $22,770.

The Trump savings accounts would cost taxpayers $3.6 billion in its current form of a government-funded $1,000 starting balance, based on the 3.6 million births in 2023, the most recent data from the National Center for Health Statistics. But Trump claimed Monday the government contributions would come at “absolutely no cost” to taxpayers as it would be carved out from “Big Beautiful Bill” initiatives including a 3.5% remittance tax on money sent abroad.

The Trump savings accounts are “not very attractive” for parents or other custodians to invest in, Alpha Financial Advisors CEO Ann Reilley told Yahoo Finance, adding it “seems” like the Trump administration is “complicating things for no reason.” Financial experts’ skepticism of the program being the best place for parents to park money for their children beyond the $1,000 freebie stems from its comparatively limited tax benefits compared to 529 college savings and Roth IRA retirement accounts.

The Trump savings accounts going into law are contingent on the Senate passing the “Big Beautiful Bill,” which became increasingly murky as fiscal hawks like Sen. Rand Paul, R-Ky., raised concerns about projections of a swelling national debt under the package.