Trump’s New Bill Grants $1000 for Babies
On July 4th, Trump passed a new law saying that all babies born in the U.S. through 2028 will receive $1000 from the U.S. government. This encourages families to help their children create a strong economic start.
Trump says that these accounts are created as part of the tax and spending plan signed by the president, also known as the Big, Beautiful, Bill (BBB.) Experts say that this will help boost the entire economy of the population by increasing the population.
On the surface, this may seem like a great deal because each family is getting a free thousand dollars. However, each year, there are about 3.6 million babies being born, forcing the U.S. government to lose approximately several billion dollars each year that this law is put into place.
Madeline Brown, a senior policy associate with the Urban Institute who studies financial security, also has comments about the Bill. She says, “It has shifted more to a retirement product.” That’s somewhat puzzling, she added, since several types of retirement accounts are already available.
Still, the one-time contribution can be a life changer for particular families. Many financial advisors have all said, “Who’s going to say no to $1,000?”
The accounts are said to have already started, and they are currently continuing. However, families have not released much publicity about them.
Parents might try to persuade the kid to invest in companies so that they can make money. However, money in the accounts must be invested in low-cost stock mutual funds or exchange-traded funds tracking a U.S. stock index, like the S&P 500.
The Treasury Department and the Internal Revenue Service had not yet commented on this topic yet. “My sense is there is still work to be done to get it up and running,” said Alex Muresianu, a senior policy analyst at the Tax Foundation, a think tank that generally favors lower taxes.
On the surface, this may seem like a waste of money, but for some, this might be a gift from the heavens. No matter who the families are, this is a topic to be considered deeply.
