A draft proposal from President Trump, referred to as the “Big, Beautiful Bill,” introduces an initiative for a “MAGA” savings account aimed at children.
This pilot program, named the “Money Account for Growth and Progress” or “MAGA Account,” was announced on Monday. It offers every newborn with a Social Security number over the next few years an initial deposit of $1,000.
This amount is expected to gain interest and increase in value through investments over time. Additionally, families and employers can contribute up to $5,000 each year to these accounts.
The program aims to provide substantial financial support when these children reach adulthood, assisting with education, vocational training, starting a business, or purchasing a home.
Senator Ted Cruz from Texas is reportedly one of the key figures pushing this initiative as part of Trump’s broader tax cut strategy, comparing it to a retirement account for kids.
“Think of it like a 401(k) for every newborn in America,” Cruz explained in an interview with Semafor on Monday, highlighting that employers often find it beneficial to contribute to these savings plans.
Cruz emphasized the potential of these accounts to engage a new generation within the U.S. economy. “The idea is to grant every child in America an investment opportunity and a stake in the country’s free market,” he stated.
“Many Americans don’t invest in stocks or bonds; they may not have a significant interest in the free enterprise system,” he added.
