$1,000 for Every Baby: What Parents Need to Know

Under the OBBBA, every baby born between January 1, 2025 and December 31, 2028 is eligible for a $1,000 “welcome-to-life” deposit into a Trump Account. There's no income restriction—it's universal for eligible newborns.

A Trump Account isn’t a new type of bank account—it’s simply the nickname for a government-created investment account funded at birth. Parents can then choose how to grow this money: keep it in the government-managed index fund, add contributions of their own, or roll it into a self-directed investment option (allowed choices are limited to approved, low-cost funds—no risky or speculative trading).

Withdrawals aren’t allowed until the child turns 18, at which point the account converts into a traditional IRA (with penalties for early withdrawals).

Families may contribute up to $5,000 per year, and employers up to $2,500 per year tax-free—typically offered as a workplace benefit or matching contribution—starting right after the account is opened.