Children born this year would automatically receive a new savings account seeded with $1,000 under a proposal highlighted by U.S. Senator Ted Cruz, aimed at helping families build long-term wealth for their children.
According to Cruz, the plan would open what he called a “Trump Account” for every newborn, with the federal government providing the initial deposit. Families could then contribute up to $5,000 annually.
Assuming a 7 percent annual growth rate, Cruz said the account could grow to about $170,000 by the time a child turns 18.
Supporters argue the initiative would promote early saving, financial literacy, and generational wealth-building. Critics, however, are expected to question the cost, structure, and feasibility of the proposal as debate continues.
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