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Topics: Donald Trump, Politics, US News, Parenting, Money
Lucy Devine
Topics: Donald Trump, Politics, US News, Parenting, Money
US President Donald Trump has announced plans to give everyone $1,000 if they were born between two set years as he expands his plans around his 'big, beautiful bill'.
On Monday (9 June), Trump announced a new scheme which will provide $1,000 government-funded investment accounts for American babies born in specific years.
Dubbed the 'Trump accounts', the president announced the move at the White House, explaining that the accounts will 'track the overall stock market'.
It forms part of his plans for his 'big, beautiful bill' which appeared to set off a rift between him and his former 'First Buddy' Elon Musk, who slammed the proposed legislation, saying it will undo all his work at the Department of Government Efficiency (DOGE).
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In his latest announcement about the so-called 'Trump accounts', the POTUS explained: “For every US citizen born after December 31, 2024, before January 1, 2029, the federal government will make a one-time contribution of $1,000 into a tax-deferred account that will track the overall stock market.
"These accounts will be private property controlled by the child's guardians."
The president referred to the accounts - which allow personal contributions of up to $5,000 each year - a 'pro-family initiative that will help millions of Americans harness the strength of our economy to lift up the next generation'.
Meanwhile, House speaker Mike Johnson said: “It’s a bold, transformative policy that gives every eligible American child a financial head start from day one. Republicans are proud to be the party we always have been.
"It supports life and families, prosperity and opportunity.”
However, there's a bit of a catch.
The move would hinge on Trump's controversial 'big, beautiful bill' being approved, which still has to go to the Senate.
Last month, the House launched a debate on Trump's so-called 'big, beautiful bill' and was passed through by a single vote with Democrats staunchly opposed to it.
The proposed law includes a raft of tax cuts, including no taxes on tips for workers in the service and beauty industries and a freeze on taxes on those working overtime, all while redirecting funds to military and border security.
It would also pave the way for tax deductions on up to $10,000 in interest on auto loans for cars made on US soil and $200 taxes on gun silencers.
However, it's touted as a temporary exemption that will come to an end in 2028 - or 2029 for the car loan interest deal.
Also on the bill is a $500 hike in child tax credit, totalling $2,500 through to 2028, and controversial changes to Medicaid and SNAP food stamp benefits to make up for scores of the lost tax revenue.
This includes more frequent eligibility checks, cuts in funds for undocumented immigrants and a ban on children and adults accessing funds for gender transition services.
The Congressional Budget Office estimated 8.6 million fewer people would have healthcare coverage as a result while the changes to Medicaid, food stamps and other services pose a saving of one trillion dollars.