Overview

• The Trump administration is considering a $5,000 'baby bonus' to incentivize childbirth as U.S. birth rates remain at a historic low of 1.6 children per woman.
• Critics argue that the one-time payment is insufficient to offset the $300,000 estimated cost of raising a child and fails to address systemic issues like childcare costs and paid parental leave.
• Global precedents in countries like Italy, Russia, and Hungary suggest that financial incentives alone have largely failed to reverse declining fertility rates.
• Experts highlight the 'motherhood penalty,' which accounts for 80% of the U.S. gender pay gap and disproportionately affects women’s career progression and earnings after childbirth.
• Broader reforms, including affordable childcare, flexible work policies, and paid leave, are seen as critical to effectively supporting family formation and reversing demographic decline.