A new savings account for children with a one-time deposit of $1,000 from the federal government remained in the U.S. Senate’s version of President Donald Trump’s budget bill.
Under the proposal, so-called “Trump accounts,” a type of tax-advantaged saving accounts, would be available to all children under the age of eight years old who are U.S. citizens. In earlier versions of the proposal, Trump accounts were termed “Money Accounts for Growth and Advancement” or “MAGA accounts.”
If the bill passes as drafted, parents will be able to contribute up to $5,000 a year and the balance will be invested in a diversified fund that tracks a U.S.-stock index. This part of the Senate Republicans’ version of the One Big Beautiful Bill Act was largely unchanged from the House plan advanced in May.
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