'The One, Big, Beautiful Bill' Would Create 'MAGA' Savings Accounts—With A $1,000 Gift From The Government At Birth

A new Republican tax proposal backed by President Donald Trump and Sen. Ted Cruz (R-TX) could give every newborn in the U.S. a head start with a $1,000 investment account.

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What Are MAGA Accounts?

The accounts are called “MAGA Accounts,” short for “money account for growth and advancement.” While the name echoes Trump's famous campaign slogan, the idea came from Cruz, who spent over a year promoting the concept inside the GOP and who initially used the name "Invest America."

"You can call it anything you like,” Cruz told Semafor on Monday. “What is powerful is enabling every child in America to have an investment account and a stake in the American free enterprise system.”

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Under the proposal, the federal government would contribute $1,000 to an account for every baby born between 2025 and 2028. Families, friends, and even employers could contribute up to $5,000 each year. Children wouldn't be able to access the funds until they turn 18, and the money would accumulate interest.

Cruz said the goal is to help more Americans benefit from the power of compound interest and grow up with a financial stake in the economy. "This will give everyone a stake," he said. “When every child has invested, it's no longer an abstract idea.”

Trump's Imprint

The MAGA accounts are part of a much larger piece of legislation dubbed “THE ONE, BIG, BEAUTIFUL BILL” — in all capital letters. Trump used the phrase on Truth Social, writing, “The Bill is GREAT.”

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The bill includes around $4.9 trillion in tax cuts and aims to follow through on Trump's campaign promises. It includes breaks for tipped and overtime workers, retirement-age Americans, and new taxes on private university endowments. It also includes significant cuts to programs like Medicaid, food stamps, and clean energy initiatives.

Cruz vs. ‘Baby Bonds’

Cruz emphasized that the MAGA accounts are different from Democratic “baby bond” proposals, which are more restrictive and don't allow private market investments. “That is just a government program,” Cruz said. “This is very much designed to get the next generation to invest in the market.”

Business leaders appear to be on board. Investor Brad Gerstner told CNBC on May 5 that companies like Uber UBER, Dell DELL, Nvidia NVDA, and Oracle ORCL are already interested in contributing to their employees’ children's accounts. “You will have an account in the S&P 500 that’s worth upwards of $50,000 to $60,000. It changes the game by getting everybody. This is the president’s Main Street agenda.”

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What's Next?

House Speaker Mike Johnson (R-LA) is pushing for passage by Memorial Day. If it clears the House, the Senate is expected to make revisions.

Meanwhile, Democrats have slammed the broader bill, especially the proposed Medicaid cuts. Sen. Dick Durbin (D-IL) told Semafor, "Even a stopped watch is right twice a day,” giving faint praise to Cruz's MAGA account idea while criticizing the rest of the GOP proposal.

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