Trump’s ‘Big, Beautiful Bill’ includes ‘MAGA accounts’ proposal giving $1K to newborns

President Trump’s “Big, Beautiful Bill” Includes Proposal for “MAGA” Savings Accounts for Children

A draft of President Trump’s proposed legislation unveils a groundbreaking initiative to establish “MAGA” savings accounts for children, aimed at securing their financial future from an early age.

The program, known as the “money account for growth and advancement” (MAGA account), will provide every newborn with a Social Security number in the coming years with an initial deposit of $1,000. This seed money will then grow through investments and accrue interest over time.

Families and employers will also have the option to contribute up to $5,000 annually to these accounts, ensuring a substantial financial foundation for the children as they grow up.

The ultimate goal of the MAGA accounts is to provide young adults with significant financial resources for purposes such as education, job training, entrepreneurship, or homeownership.

Senator Ted Cruz of Texas, a key proponent of the initiative within Trump’s tax-cut plan, likened the concept to a retirement fund tailored for children.

“It’s essentially a 401k for every newborn in America. Employers have found it to be an attractive benefit for their employees, encouraging them to match or contribute to these savings accounts,” Cruz explained in an interview with Semafor.

Cruz emphasized that the MAGA accounts would introduce a new generation to the American economy, fostering a sense of ownership and investment in the country’s financial system.

“By providing every child in America with an investment account, we are empowering them to actively participate in the American free enterprise system,” Cruz stated. “This initiative ensures that every individual has a stake in the economic prosperity of our nation.”