MAGA Baby Savings Accounts

The White House, through its press secretary Karoline Leavitt, officially presented on Monday one of President Donald Trump’s main legislative proposals: the “big, beautiful bill,” a comprehensive 1,116-page package aimed at consolidating several campaign promises and reinforcing conservative policies. Among the most notable points is the intention to make the 2017 tax cuts permanent—otherwise set to expire in 2026—and to establish new policies to promote birth rates, family savings, and the protection of social benefits for American citizens.

One of the central components of the proposal is the creation of the pilot “MAGA” savings account program for babies, originally proposed by Senator Ted Cruz. MAGA, which in this context stands for Money Account for Growth and Advancement, refers to optional savings accounts that would receive an initial $1,000 credit at birth. These accounts would be available for babies born before January 1, 2024, under eight years old, U.S. citizens, and with at least one parent holding a valid Social Security number. Parents and other relatives could contribute up to $5,000 annually in after-tax dollars to these accounts. Beneficiaries could withdraw funds starting at age 25, and from age 30, access the full balance for any purpose. According to Leavitt, it is like a “401K for newborns,” designed to benefit working families and promote financial planning from an early age.

The bill also proposes increasing the child tax credit to $2,500 per child and strengthening access to paid family leave, reinforcing its “pro-family” orientation. At the same time, it contains measures to reform the Medicaid program. These include eliminating funding for gender reassignment treatments for minors and removing approximately 1.4 million illegal immigrants who currently receive Medicaid benefits, with the goal of preserving the system for low-income American citizens, pregnant women, children, individuals with disabilities, and seniors.

Karoline Leavitt warned that if Democrats block the extension of Trump’s tax cuts, Americans will face what she described as “the largest tax hike in history,” estimated at $4 trillion.

In addition, the bill has encountered internal obstacles among Republicans themselves, particularly concerning the implementation date of the new requirements for able-bodied Medicaid recipients. Although the package schedules implementation for 2029, House Speaker Mike Johnson indicated he would prefer to apply them as soon as possible. The proposal narrowly passed the Budget Committee with a 17–16 vote, with four critical Republicans voting “present” in protest.

This legislative effort is also tied to a broader agenda of the Trump administration and its allies, which includes encouraging marriage and childbirth as a response to demographic decline. Key figures such as Vice President JD Vance support this conservative movement focused on strengthening traditional family values and promoting the economic self-sufficiency of American families.