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Concealed Republican > Blog > Politics > Donald Trump’s ‘Big, Beautiful Bill’ Proposes $1,000 ‘MAGA Accounts’ for Newborns
Politics

Donald Trump’s ‘Big, Beautiful Bill’ Proposes $1,000 ‘MAGA Accounts’ for Newborns

Jim Taft
Last updated: May 13, 2025 9:56 pm
By Jim Taft 3 Min Read
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Donald Trump’s ‘Big, Beautiful Bill’ Proposes ,000 ‘MAGA Accounts’ for Newborns
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A new draft of President Donald Trump’s proposed economic legislation, titled the “Big, Beautiful Bill,” includes a provision to create investment accounts for newborns, dubbed “MAGA accounts,” short for “Money Account for Growth and Advancement,” as reported by The New York Post.

According to the bill, every baby born in the United States over the next few years who receives a Social Security number would automatically receive $1,000 deposited into one of these accounts.

The funds would grow over time through interest and investments, with the option for family members and employers to contribute up to $5,000 annually to each child’s account.

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The purpose of the accounts is to provide future financial support for children when they reach adulthood, enabling them to use the accumulated funds for expenses such as higher education, job training, starting a business, or purchasing a home.

Texas Senator Ted Cruz played a key role in incorporating the MAGA account proposal into the bill. Speaking to Semafor on Monday, Cruz said the program functions like a “401(k) for every newborn in America.”

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“This is essentially a 401k for every newborn in America, and just like with 401ks, employers have seen it is a very attractive benefit for their employees to match or help seed those savings accounts,” Cruz said.

He emphasized that the program would help integrate the next generation into the U.S. economic system. “What is powerful is enabling every child in America to have an investment account and a stake in the American free enterprise system,” Cruz stated.

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“There are many Americans who don’t own stocks or bonds, are not invested in the market, and may not feel particularly invested in the American free enterprise system. This will give everyone a stake,” he added.

The MAGA account initiative is part of a larger tax cut plan designed by President Trump and his GOP allies in Congress.

The proposed legislation seeks to encourage long-term savings, broaden access to investment opportunities, and expand the financial independence of future generations.

As the bill makes its way through Congress, supporters view the savings accounts as a way to boost civic engagement in the economy and promote wealth-building from a young age.

Additional details on implementation, oversight, and funding mechanisms are expected as the proposal advances.

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