Trump's ‘big, beautiful bill’ offers $1K ‘MAGA’ savings accounts for children. Here's what to know

House Republicans propose MAGA savings accounts for children with $1,000 initial funding in Donald Trump's ‘big, beautiful bill’ unveiled on Monday

The House Republicans proposed Donald Trump's “big, beautiful bill” on Monday. The draft includes a pilot program for “money account for growth and advancement” or “MAGA” savings accounts for children with $1,000 each, according to Business Insider.

FILE PHOTO: U.S. President Donald Trump makes an announcement about a trade deal with the U.K., in the Oval Office at the White House in Washington, D.C., U.S., May 8, 2025. REUTERS/Leah Millis/File Photo (REUTERS)

Trump's ‘big, beautiful bill’: Here's what to know about ‘MAGA’ savings accounts for children

The proposed plan, spearheaded by Ted Cruz, would give every qualifying child a “one-time credit of $1,000.” The amount would be payable into the child's “MAGA account” and would be “exempt from taxation.”

The eligibility criteria for the program state that the child must be a US citizen “at birth,” have a valid Social Security number, and must be born after December 31, 2024 and before January 1, 2029.

While the account proposed in the bill could be opened for kids under the age of eight, the children will not get access to it until they turn 18. The bill further states that employers and families can contribute up to $5,000 to their children's accounts annually, according to Newsweek.

Cruz likened the program to a retirement fund for children, telling Semafor on Monday, “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.”

“What is powerful is enabling every child in America to have an investment account and a stake in the American free enterprise system,” the Texas senator further told the outlet.

“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,” Cruz added.