House Republicans unveiled plans for so-called "MAGA" savings accounts for children as part of President Donald Trump's "big, beautiful bill."
The bill's draft talks about the creation of "Money account for growth and advancement" accounts, which are also called "MAGA accounts." It also laid out a pilot program to launch the accounts themselves to have $1,000 each.
Donald Trump's Big Beautiful Bill
Texas GOP Sen. Ted Cruz recently discussed the plan after pushing the idea to his Republican colleagues when they attended a party retreat earlier this month. At the time, he said that lawmakers should ask themselves what people will remember and talk about after a decade or so from now.
Cruz also said that the MAGA accounts could help many Americans take the first step in the "journey of savings." These individuals could reap the rewards of compound interest many years later.
The item is listed as the "MAGA Accounts Contribution Pilot Program" in the House bill. It plans to give American parents who have a qualifying child a "one-time credit of $1,000" that would be payable into the kid's account, according to Business Insider.
For children to be considered eligible for the program, they have to be U.S. citizens "at birth," possess a Social Security number, and have a birthdate after Dec. 31, 2024, and prior to Jan. 1, 2029.
The MAGA accounts are specified as being "exempt from taxation" in the House bill's draft version. The proposed bill is similar to the so-called "baby bonds" proposal from Democratic Sen. Cory Booker of New Jersey.
Plans To Spend Trillions of Dollars
The bill comes as House Republicans also unveiled how they plan to spend trillions of dollars on tax breaks to benefit Americans. It comes as part of President Trump's long-awaited tax plans, such as scrapping federal taxes on tips, overtime pay, and car loan interest, CNN reported.
Trump also demanded a debit limit hike, which would cost the federal government a total of $4 trillion to punt the problem for another few years. It would require Congress to raise the debt limit before its August recess if it wants to avoid default.
GOP leaders are aiming for the Budget Committee to vote on the bill on Friday morning, followed by Rules Committee consideration next Monday. August marks the real hard deadline as it is when Treasury expects the U.S. to his its debt limit X-date and run out of cast to pay all of its bills, as per Politico.
