Trump’s New Baby Stimulus: $1,000 At Birth Can Grow Up To $93,000 By Retirement

Trump’s Baby Stimulus: On July 4, 2025, President Donald J. Trump signed a new law called the “One Big Beautiful Bill Act” or OBBBA. He signed it in the South Garden of the White House. The law is very big and tries to help families save money and have more kids. Trump said, “Investing in children is investing in America’s future.”

The law has many parts. It changes taxes and gives labor incentives. But the most talked about part is the new money plan for kids called “Trump Accounts.”

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What are Trump Accounts?

Every child born in the United States from 2025 to 2028 will get a Trump Account. The government will put $1,000 in this account when the baby is born. Parents can also put money in the account. They can put up to $5,000 a year. $3,000 of this can be deducted from taxes.

The money in the account will be invested in index funds. It is like a mix of a college plan and a retirement plan. Families can use the money later for school, buying a home, or retirement. Kids can take the money out when they turn 18.

How much can the Money grow?

The Trump Accounts can grow a lot over time. Experts at the Brookings Institution said if a family puts $2,000 every year the account could have more than $100,000 by the time the kid turns 18. Even if no extra money is added, the $1,000 from the government can grow with interest. If it grows 4% a year it can reach $13,800. At 5% it can reach $26,000. At 7% it can go up to $93,000 by age 67.

Some people do not like this plan. U.S. Treasury Secretary Scott Bessent called it a “backdoor for privatizing Social Security.” He said it might make people depend less on Social Security. But he also said it is only to help families and not replace Social Security.

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Why Trump made this Law?

Trump made this law because U.S. birth rates are low and families need more help. The law gives money to families and encourages them to save. Trump said, “The Big Beautiful Bill is more than a law: it is a patriotic investment in every baby born on American soil.”

This law will take a few years to see results. It may help families save money and help kids in the future. Many people are watching closely to see if it really works.