During Women’s History Month, President Donald Trump referred to himself as a “fertilized president.” This statement sparked debate among experts, especially regarding proposals like his $5,000 baby bonus plan, which have been trialed in various countries before with mixed outcomes.
Countries such as Singapore, Hungary, and Australia have implemented similar programs. For instance, Singapore has been providing financial support for parents for decades. As of 2023, the contributions per child have reached S$11,000 (about US$8,000), yet the country still grapples with one of the lowest birth rates globally.
Gabriella Hoffman from the Independent Women’s Forum remarked on social media that such baby bonus schemes did not yield favorable results in Hungary. Under the leadership of President Victor Orban, Hungary has tried to encourage higher birth rates by offering tax breaks for families with three or more children. While there was a slight increase in the birth rate a decade ago, it has since declined back to previous lows.
In Australia, a similar baby bonus initiative was launched in 2004, which increased from A$3,000 to A$5,000 by 2008, correlating with a current birth rate of approximately 1.5 as of 2023.
Paula Landz, a sociodemographic researcher at the University of Michigan, mentioned to a media outlet that families with multiple children are becoming less common in the U.S. and pointed out that non-financial factors, such as overall quality of life, play significant roles in this trend.
Representatives from the American Liberal Center earlier expressed skepticism about the potential impact of financial incentives like the $5,000 credit, noting that even with good insurance and paid family leave, many families struggle.
Andrea Ippolito, founder of a maternal health tech platform, commented that while the proposed $5,000 is beneficial, it only barely addresses the extensive support needed, especially for children’s well-being. She emphasized the importance of prioritizing both physical and mental health needs.
Emily and Nathan Burning, co-founders of a pregnancy support site, acknowledged that while the baby bonus is a step in the right direction, much more is required. They stressed that financial assistance after childbirth is helpful, but stability during pregnancy—such as support for housing, food, and emotional counseling—is critical.
In Congress, Senator Ted Cruz from Texas has put forth a federal initiative to establish $1,000 accounts for every American child. The Invest America Act aims to create private tax accounts, which, according to Cruz, could allow for investments in low-cost funds aligned with the S&P 500 until the child turns 18.
Questions were raised regarding past versions of such accounts and whether they were effective, and both Cruz and the White House were contacted for comments on the criticisms surrounding these proposals.
