White House press secretary Karoline Leavitt on Monday detailed a provision of President Donald Trump’s “big, beautiful bill” that would codify “MAGA” savings accounts for new parents.
The 1,116-page legislative package that would make the Trump 2017 tax cuts permanent by 2026 and enact several other campaign promises narrowly passed out of the key House Budget Committee in a Sunday night vote. House Speaker Mike Johnson, R-La., is continuing negotiations with conservatives while racing to get the bill across the finish line by Memorial Day.
The bill includes a proposal by Sen. Ted Cruz, R-Texas, that would establish something called the MAGA accounts contribution pilot program.
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“Put simply, President Trump’s one big, beautiful bill will be a boon for working-class America,” Leavitt said Monday. “This one big, beautiful bill is also pro-family. It 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.”
MAGA, while similar to Trump’s “Make America Great Again” slogan, in the pilot program refers to a “money account for growth and advancement.”
“This is a very pro-family piece of legislation. Not only does it increase the child tax credit, but it also includes MAGA baby savings accounts for children that are born before Jan. 1, 2024, under eight years old, U.S. citizens, and have at least one parent with a valid Social Security number,” Leavitt said, explaining how the proposal, first introduced by Cruz earlier this month as the “Invest America Act,” would work. “And when this tax provision becomes law, the child will, if the parents seek to do this, will be set up, with a savings account.”
“Essentially, it’s a 401K for a newborn baby,” Leavitt continued. “A child’s relatives, their parents can contribute up to $5,000 per year of after-tax dollars annually to that account. And then later in the baby’s life at age 25, savings account holders can withdraw up to the full balance of the account. 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.”
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The New York Times reported last month that the White House was considering multiple other proposals from policy experts and advocates on how to convince more Americans to get married and have children. A conservative cultural movement aimed at reversing declining birth rates and bolstering traditional family values has found supporters among the administration and its allies, including Vice President JD Vance.
The main hurdle for Republican consensus on the “big beautiful bill” is how soon Medicaid requirements for able-bodied adults can be implemented. Under the current package, those requirements wouldn’t go into effect until 2029, though Johnson has indicated he’d want the stipulation to apply “as soon as possible.”
The bill passed out of the budget committee on Sunday by a 17-16 vote. The same four Republicans who staged a GOP mutiny on the package last week voted “present” Sunday night. They were Reps. Chip Roy, a House Freedom Caucus leader from Texas; Ralph Norman of South Carolina; Josh Brecheen of Oklahoma; and Rep. Andrew Clyde of Georgia.
Leavitt said Monday that if “Democrats get their way and the Trump tax cuts are not extended, Americans will face the largest tax hike in history to the tune of $4 trillion.”
“The one big, beautiful bill also provides critical protections of Medicaid, which will strengthen and preserve the program for decades to come through commonsense efforts to eliminate waste, fraud, and abuse. Medicaid will no longer be used to pay for barbaric gender mutilation procedures on minor children, and the 1.4 million illegal aliens who are currently improperly receiving Medicaid benefits will be kicked off the program to preserve it for hardworking American citizens who need it,” Leavitt said, outlining the White House’s stance.
“President Trump and Republicans are protecting Medicaid benefits for pregnant women, children, disabled individuals, low-income seniors and families, and the most vulnerable Americans in our society. And that’s what Democrats are so angry about,” she continued. “Basic Medicaid protections that will stop the funding of transgender insanity and illegal aliens from ripping off American taxpayers.”
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