Donald Trump introduced a federal program that offers $1,000 government-funded investment accounts for American babies. The initiative, backed by top business leaders such as CEOs from companies like Uber, Goldman Sachs, and Dell Technologies, aims to provide tax-deferred investment accounts tracking stock market performance for children born between 2025 and 2029. These “Trump accounts” will receive a one-time $1,000 contribution from the federal government and allow additional private contributions up to $5,000 annually, controlled by guardians. The program is described as a pro-family initiative to support the next generation and boost the economy.

CEOs like Michael Dell, Dara Khosrowshahi, David Solomon, and Vladimir Tenev have committed billions to employees’ children’s accounts, with Trump praising them as great business minds. The program, part of a larger budget bill, faces Senate Republican resistance and is dependent on passing what Trump calls the “big, beautiful bill.” Critics have raised concerns about the bill’s impact on the national debt and social welfare programs.

While similar programs have been implemented in the UK and Singapore, some financial advisors question the investment incentives of the Trump accounts. Trump remains optimistic about the potential returns, emphasizing the benefits for beneficiaries. House Speaker Mike Johnson advocates for swift congressional action on the legislation to prevent what he calls the largest tax increase in American history and promote growth for all Americans.