US President Donald Trump launched this week a birth incentive program for American families, the “Trump Accounts” (Trump Accounts), which provides for the allocation of US$1,000 (around R$5,200) to each newborn in the USA.
According to the proposal, this amount will be invested in the stock market by private companies and can be withdrawn when the beneficiary turns 18. Trump explained during a Treasury Department event on Wednesday (28) that the incentives are aimed at helping children get a “real start in life.”
“Decades from now, I believe Trump’s bills will be remembered as one of the most transformative political innovations of all time,” the president said.
Bank accounts opened by the program are tax-exempt, as established by Law One Big Beautiful Bill (Big and Beautiful Bill), sanctioned by the president in July. The U.S. Treasury will contribute $1,000 to the accounts of children born between January 1, 2025 and December 31, 2028.
In addition to the government incentive, starting in July this year, family, friends and those interested in contributing will be able to allocate up to US$5,000 annually to one of these accounts, a limit that will be readjusted for inflation from 2028 onwards.
Charitable organizations and state governments will also be able to make contributions, which do not count toward the annual limit.
