Overview

• The 'Trump Accounts' provision would grant every newborn a $1,000 government-funded investment account, with guardians permitted to contribute up to $5,000 annually for education, home purchases or business startups.
• Supported by President Trump and Republican leaders, the proposal has drawn matching commitments from finance executives including Goldman Sachs CEO David Solomon as well as Dell Technologies founder Michael Dell.
• Eligibility requires that the child be a U.S. citizen and both parents hold Social Security numbers, with funds growing tax-deferred and qualified withdrawals taxed at capital-gains rates.
• Policy analysts caution that the program’s administrative complexity and estimated $3 billion annual cost could exacerbate the federal deficit.
• After clearing the House on May 22, the package is now under Senate review but faces uncertain prospects because of bipartisan concerns over its fiscal impact.