If you’re a US citizen expecting a baby in 2026, there’s good news. The Federal government wants to give your child some money.

Starting this year, any US citizen under 18 qualifies for a 530A “Trump Account,” sometimes referred to as a “Kid IRA.” Parents, grandparents, or other loved ones can contribute up to $5000 per year, which will be tax-deferred until the child turns 18. The money will then be available to the child for major life events, such as going to college, buying their first home, or starting a small business. For babies born between 2025 and 2028, there’s a special bonus; the One Big Beautiful Bill Act of 2025** provides for a $1,000 gift from the Federal government, deposited as “seed money” for newborns. The goal, ostensibly, is to ensure that every American child, from the day of birth, can “own a piece of the American dream.” 

This isn’t the sort of family policy we’ve come to expect from ostensibly pro-family countries. Maybe that’s good. Where some nations have raced to give parents short-term assistance with childcare, groceries, and the like, this policy tries to open pathways to brighter, more prosperous futures for American kids. It’s hard to say whether this will have any meaningful impact on birth rates, but it might be worth a try, because the other kind of family policy doesn’t seem to be working very well. Over the last ten years, the pronatal case for cradle-to-grave state largesse has become exceedingly weak.

...read more at lawliberty.org