American Babies May Soon Get 'Trump Accounts'

One of the measures tucked into the massive spending package that cleared the House on Thursday is a plan to set up newborns with $1,000 savings accounts. More specifically, these would be for babies born between Jan. 1, 2025, and Jan. 1, 2029, the dates covering the bulk of President Trump's second term, reports the New York Times. Thus, the name: "Trump accounts."

• Name change: Republicans previously pitched them as MAGA accounts, technically standing for "money account for growth and advancement." It doubled as an homage to Trump's political movement, but Republicans made a last-minute name change to make the homage to the president even clearer, reports NBC News.

• The idea: Parents of newborns would get a $1,000 tax credit that would seed the accounts, and parents or others could continue contributing over the years. Between those contributions and compound interest, the newborn could have tens of thousands of dollars as a young adult, explains Semafor. Sen. Ted Cruz is the main architect of the idea.
• Semantics: Democrats (notably Sen. Cory Booker) have pitched a similar plan called "baby bonds," per Business Insider. But they're not thrilled with the new name: "You all would be screaming bloody murder if we named savings accounts after Barack Obama," said Democratic Rep. Joe Neguse of Colorado, per Axios.
• Details: Assuming the accounts are still standing when the spending package clears the Senate, some tax particulars need to be ironed out about how the plans will operate, notes the Times.

(More President Trump stories.)