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4mo ago

House Passes Tax Bill Featuring $1,000 'Trump Accounts' for Newborns

The bill, which includes automatic investment accounts for children born between 2025 and 2029, now heads to the Senate for consideration.

Vanessa Moreno, 24, changes the diapers of her two-month-old baby Makayla at Prototypes residential treatment program in Pomona, California, March 26, 2013. Prototypes is part of the Second Chance Women's Re-entry Court program, one of the first in the U.S. to focus on women. It offers a cost-saving alternative to prison for women who plead guilty to non-violent crimes and volunteer for treatment. Of the 297 women who have been through the court since 2007, 100 have graduated, and only 35 have been returned to state prison. Picture taken March 26, 2013. REUTERS/Lucy Nicholson (UNITED STATES - Tags: SOCIETY CRIME LAW TPX IMAGES OF THE DAY)
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Overview

  • The House narrowly approved the 'One Big Beautiful Bill,' which includes $1,000 federally funded 'Trump Accounts' for U.S.-born children between 2025 and 2029.
  • Originally branded as 'MAGA Accounts,' the program was renamed to 'Trump Accounts' in a last-minute amendment before the House vote.
  • Parents can contribute up to $5,000 annually to the accounts, which will be invested in a U.S. stock index fund, with qualified withdrawals taxed at capital gains rates.
  • Funds can be used for education, a first home down payment, or starting a small business, but financial experts question their advantages compared to existing options like 529 plans.
  • The bill now moves to the Senate, where it faces potential amendments or opposition before it can become law.