Republicans are aiming to get the Trump-backed measure passed by July 4.
Senate Republicans on June 16 released the upper chamber’s version of President Donald Trump’s tax bill, which includes a $1,000 bonus in “Trump accounts.”
According to the text of a proposal of the One Big Beautiful Bill released by the Senate Finance Committee on June 16, U.S. citizen children born after Dec. 31, 2024, and before Jan. 1, 2029, would receive $1,000 if both parents have work-eligible Social Security numbers. The accounts would go into effect starting in 2026.
If a parent or guardian doesn’t open the tax-deferred investment account, the Department of the Treasury will set up an account on the child’s behalf, the bill states. Parents would have the option to opt out of it.
At age 18, recipients could withdraw the money to put toward a down payment for a home, education, or to start a small business. If the money is used for other purposes, it would be taxed at a higher rate.
“In the case of any taxpayer with respect to whom an eligible individual is a qualifying child, there shall be allowed a one-time credit of $1,000 with respect to each such eligible individual who is a qualifying child of such taxpayer which shall be payable by the Secretary only to the Trump account with respect to which such eligible individual is the account beneficiary,” the text says.
If the Senate version passes in its current form, parents could contribute up to $5,000 per year, with the balance invested into a diversified fund that tracks a U.S. stock index, according to the measure.
“This is a pro-family initiative that will help millions of Americans harness the strength of our economy to lift up the next generation,” Trump said at a White House event on June 9. “They’ll really be getting a big jump on life, especially if we get a little bit lucky with some of the numbers and the economy.”
The White House this past week also released statements from multiple top CEOs, who praised the decision.
“We see … the establishment of these Trump Accounts as a simple yet powerful way to transform lives,” said Dell CEO Michael Dell in the statement.
“Decades of research has shown that giving children a financial head start profoundly impacts their long-term success. With these accounts, children will be much more likely to graduate from college, to start a business, to buy a home, and achieve lifelong financial stability.”
