Trump launches baby-driven savings plan aimed at easing family costs

President Donald Trump announced government-backed investment accounts for newborns, starting with a $1,000 seed per child born 2025–2028 and tax-deferred growth in low-cost index funds. The accounts go live July 4, with about 25 million families eligible and more than 500,000 already signed up. The White House urges additional private contributions (notably from Michael Dell) and corporate participation, arguing the program will improve long-term family affordability, housing, diplomas and entrepreneurship—though withdrawals will be taxed and analysts note projected returns vary.