Babies will be given “Trump accounts” with $1,000 (£745) as part of a sweeping piece of legislation that the president has dubbed his “big beautiful bill”.

The measure passed through the House of Representatives on Thursday as part of an expansive tax package, which now faces a vote in the Senate before it is sent to Donald Trump’s desk for signing.

Republicans renamed the “money accounts for growth and advancement” – or Maga for short – to “Trump accounts” on Wednesday, even though the policy was spearheaded by Texas senator Ted Cruz.

Under the plan, the US government will invest $1,000 in a fund that tracks a US stock index for children born between Jan 1 2025 and Jan 1 2029.

They will be able to withdraw the sum when they become an adult for expenses such as college, buying a house, or capital to start a small business.