A draft of President Trump’s “Big, Beautiful Bill” includes a proposal to establish so-called “MAGA” savings accounts for children.
The pilot program — described as the “money account for growth and advancement” or “MAGA account” in the GOP bill released on Monday — would give every baby with a Social Security number born in the next few years $1,000.
That money will then accumulate interest and value through investments over time — and families and employees can contribute up to $5,000 in the children’ s accounts annually.
The goal would be that once the kids become adults they will have tens of thousands of dollars at hand for education, job training, starting a business or buying a home.
Texas Sen. Ted Cruz, who reportedly spearheaded efforts to have the proposal included in Trump’s massive tax-cut plan, likened it to a retirement fund for kids.
“This is essentially a 401k for every newborn in America, and just like with 401ks, employers have seen it is a very attractive benefit for their employees to match or help seed those savings accounts,” Cruz told Semafor on Monday.
Cruz said that the accounts would usher an entire new generation directly into the American economy,“What is powerful is enabling every child in America to have an investment account and a stake in the American free enterprise system,” he told Semafor.
“There are many Americans who don’t own stocks or bonds, are not invested in the market, and may not feel particularly invested in the American free enterprise system. This will give everyone a stake,” he added.
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