Trump Plans $1,000 Investment Accounts for Newborn Americans

President Trump has introduced a new federal initiative called 'Trump Accounts,' which would provide a $1,000 tax-deferred investment account for every American newborn born between 2025 and 2028, with funds invested in a low-cost index fund tracking the stock market. The accounts, controlled by the child's guardians until age 18, can be used for education, a home down payment, or starting a business, with other uses taxed more heavily. Parents and guardians can contribute up to $5,000 annually to the accounts to increase savings. The program, part of Trump's broader 'One Big Beautiful Bill' tax package, aims to help families build wealth and jumpstart their children's financial future, garnering support from CEOs of major companies such as Dell, Uber, Goldman Sachs, and Robinhood, who plan to contribute additional funds. Critics, including economist Darrick Hamilton, warn that the initiative may increase inequality since the accounts are available to families of all incomes. The plan is designed to complement existing baby bond programs and has bipartisan attention as it moves through Congress.