PERSONAL FINANCE
Personal Finance

Newborns could receive a $1,000 bonus in 'Trump s': Check the eligibility criteria

A federally backed savings initiative aimed at promoting long-term financial security

Newborns could receive a $1,000 bonus
Newborns could receive a $1,000 bonusLAPRESSE
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A groundbreaking proposal moving through United States Congress could soon provide every eligible newborn in America with a $1,000 head start in life. As part of a broader legislative package known as the "One Big Beautiful Bill," lawmakers have introduced the creation of "Trump s," a federally backed savings initiative aimed at promoting long-term financial security from birth.

If ed, these s would automatically provide qualifying infants born between 2025 and 2029 with a government-funded investment and families could continue building on it over time.

This bold initiative is designed to encourage early financial education, homeownership, and entrepreneurship, while simultaneously reducing long-term wealth gaps across communities.

The concept of giving children a financial foundation from birth is gaining bipartisan interest, but the proposal's branding and structure are sparking discussion across the political spectrum.

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How Trump s will work and who qualifies

To be eligible for a Trump , a newborn must meet three main criteria. First, the child must be born on U.S. soil between January 1, 2025, and January 1, 2029. Second, the child must be a U.S. citizen and possess a valid Social Security number. Third, at least one parent must also have a valid Social Security number to ensure the can be properly established and tracked.

Once eligibility is confirmed, the US Treasury will automatically open an in the child's name and deposit $1,000 as seed money. These funds will be invested in diversified U.S. equity index funds, setting the stage for compounding growth over time.

According to the plan, the s won't just rely on the initial deposit-parents, relatives, friends, and even employers can contribute up to $5,000 annually per . The idea is to create a tax-advantaged tool for long-term investments that could be used for major life expenses.

The Trump s are meant to help with specific milestone goals. The money can be used for higher education, vocational training, a down payment on a first home, or even to launch a small business. Withdrawals for these qualified uses will be taxed at long-term capital gains rates, which are typically lower than regular income tax rates. If the money is withdrawn for non-qualified purposes, standard income tax rules will apply.

According to the plan's current structure, holders can begin accessing their funds at age 18, but only up to 50 percent of the balance and only for qualified expenses.

Between the ages of 25 and 30, the rest of the balance becomes available for the same kinds of purposes. Once the individual turns 30, they can use the funds for any purpose, though different tax rules will apply depending on how the money is used.

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