The bill “will increase the child tax credit to $2,500 per child, establish an optional savings account for newborn babies with a $1,000 credit added and strengthen paid family leave,” said White House Press Secretary Karoline Leavitt. That money will then accumulate interest and value through investments over time.

“Essentially, it's a 401(k) for a newborn baby," said Leavitt. "A child's relatives, their parents can contribute up to $5,000 [adjusted for inflation] per year of after-tax dollars annually to that account.” The account investments can be placed in a broad, low-cost fund that tracks the S&P 500, growing tax-deferred until the individual reaches age 18. Distributions after age 18 would be taxed at the capital gains rate.

“And then later in the baby's life at age 25, savings account holders can withdraw up to the full balance of the account,” said Leavitt. “Upon reaching 30, the account holders can access the full balance of the account for any purpose desired. So it's a great initiative for new parents, new mothers who want to set up the savings account for their children."

“The Trump Accounts would seed $1,000 for every American baby born starting in 2026,” the bill states, and would stake newborns born from Jan. 1, 2025 through Jan. 1, 2029, funded by the Treasury.

“If you have a 401(k), you understand the power of investing early for the future,” said Speaker of the House Mike Johnson. “Trump Accounts take that same principle and they apply it from the very beginning of Americans’ lives … It’s a bold, transformative policy that gives every eligible American child a financial head start from day one … Trump Accounts are all about setting up the next generation for success.”

“Early childhood investments have far-reaching benefits,” said Goldman Sachs CEO David Solomon, who attended the Roundtable, along with Dell Technologies CEO Michael Dell and Goldman Sachs CEO David Solomon. “Our economy’s future vitality is dependent on young people understanding the power of investing for the long term.”

Dell will match the government contribution dollar-for-dollar for every child born to a Dell Technologies team member, said Dell. “Our economy’s future vitality is dependent on young people understanding the power of investing for the long term,” said Solomon.

Related: GOP House tax bill includes a ‘401(k) for kids,’ giving newborns $1,000

The Trump Accounts will “be a game-changer for new parents even before their newborn baby can walk or talk,” said House Ways & Means Committee Chair Jason Smith. “Their child will have money saved to one day learn a trade, start a business, or to buy a home. Every child born under this policy will have a better shot at a future. It does not matter if they live on a city block or on a county road — this will make a significant difference to their lives.”

“This is a pro-family initiative that will help millions of Americans harness the strength of our economy to lift up the next generation,” said President Trump.

According to Johnson, July 4 is a realistic target for passing President Donald Trump’s “Big Beautiful Bill,” as Republicans in the Senate weigh changes to a package that cleared the House by just a single vote in May.