Trump Accounts for newborn babies is the creepiest part of the BBB
While new parents are celebrating a child, now they're forced into having a Trump stock account
Writer’s note: I am not a parent nor have I ever had any desire to be. The sight of babies, the sound of babies squealing, the newborn smell or kids’ parties don’t make me look on yearningly. I enjoyed playing Barbie with one baby cousin (who turned out to be the prettiest adult), always scooped up both nephews when they were (amazingly adorable) babies, and used to laugh at my childhood best friend’s son squeezing women’s bare legs. Absolutely none of those experiences in my late teens and 20s made me want to have kids. I bring this up because new parents may completely disagree with this post. I’m writing it anyway.
I attempted to read the 900+-page document of Trump’s “Big Beautiful Bill” in between breaks from these Harvard audit political courses I’m taking. The reason I wanted to read the bill in between this is to see if it was clashing with everything I’m learning (or refreshing my memory) about presidential power, Congressional power and governmental busybodies. But when the Senate got ahold of it and started rewriting and changing parts, I lost interest entirely before the Fourth of July. I already had a bone to pick with the funds being reduced for domestic violence facilities that would affect pet owners and the bizarre obsession with destroying the climate.
But the “Trump Account” was not on my radar at the time, and it is by far the creepiest part of this entire bill.
What’s a Trump Account?
With the passage of the One Big Beautiful Bill Act, any child born between January 1, 2025 and December 31, 2028 gets an automatic $1,000 deposited into a low-cost, diversified U.S. stock index fund (or equivalent). Eligibility requires that these babies be born in the U.S., have a valid Social Security number and be born to parents with valid Social Security numbers. (This is a direct shun to immigrants — even those who earn legal status later.)
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As an Amazon affiliate, I earn a percentage from purchases with my referral links. I know some consumers are choosing to boycott Amazon for its DEI removal. However, after thinking about this thoroughly, I choose to continue promoting intriguing products from small businesses, women-owned businesses and (specifically) Black-owned businesses who still feature their items on Amazon. All five of my Substack publications now include a MINIMUM of one product sold by a Black-owned business. (I have visited the seller’s official site, not just the Amazon Black-owned logo, to verify this.) If you still choose to boycott, I 100% respect that decision.
For parents who do not voluntarily sign up for this account, when they file their taxes, the Secretary of the Treasury will check their status and create this stock account for the baby on the parents’ behalf. Parents can then choose to deposit up to $5,000 in this account each year, along with the parents' employers. (Eventually, the child’s employer can do so too if, for example, it’s a teen with an after-school job.)
As of now, there appears to be no option to automatically opt out of this account being set up.
Why is the Trump Account a bad idea?
There are four reasons:
Financial literacy in schools
The average school system does not teach students about stocks and bonds. (There are exceptions. I talked straight through an economics course with my teacher who tried his best to guide us, but I hated math so much that I preferred gossiping with the cute boy behind me instead of cutting out newspaper sections. The irony is I now have stocks, bonds and an IRA. I wish I knew where that economics teacher was — and that he is still alive — so I could thank him for all that information he put in my head that I surprisingly never forgot.)
Recommended Read: “If you're new to investing, here are five easy ways to test the waters ~ Almost half of Black stock investors are between the ages of 18-34”
If schools don’t teach students about money management — and have more interest in putting the “10 Commandments” on the wall and letting parents rush their kids away when LGBTQ+ stories are told — this baby will grow up to be an adult and still not have a clue — unless the parent is already financially literate. If no.changes will be made to teach kids how stocks work and make it a mandatory part of graduating, why create an account they do not understand?
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Auto-in/Auto-out stock nightmares
I once worked for a company that signed up with the worst HR/accounting organization I have ever experienced in my entire life. Not even something as simple as pet insurance deductions worked out and turned into a three-month argument over missing money that the pet insurer hadn’t received. And if you read “Black Girl In a Doggone World™, you know I don’t play about Junee (or Jackie or Shep or Faith or any of my favorite Wag! dogs).
When that company wanted to auto-sign me up for stocks after the pet insurance fiasco, I immediately rejected the idea and scrambled to remove myself. But there was no opt-out feature. While the company said I should be able to log in and opt out pre-paycheck, my name was nowhere to be found. This started another two weeks of confusion between the stock company and two HR reps (with far too much attitude to be dead wrong).
Recommended Read: “5 reasons to avoid joining Robinhood ~ Finding a mobile-friendly app for IRAs and stocks doesn't outrank human customer service”
When you sign up for stock and you have full control over the company you’re working with (because every investment company isn’t great), it is much easier to sign up or opt out on your own conditions. While I understand that some employees are misguided into thinking they have 401(k) plans and would keep them if they were automatically signed up, for people who already have financial accounts in these categories, adding on another one is not only useless but it’s intrusive.
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Parents can create their own savings accounts
The Trump Account is not needed. There’s no explanation for where the $1,000 came from, which means it’s probably tax dollars, and parents could’ve easily set up their own accounts when the child was born — and set it up with the stocks, bonds and features of their choosing.
Recommended Read: “The underdog of owning property: Grant qualification ~ Your mortgage company may or may not tell you about grant options”
Having a baby should not involve Trump. Nobody besides MAGA wants a nurse or a doctor telling them all about their free Trump account right after childbirth. Not only has Trump inserted himself into women’s business when it comes to Roe v. Wade, but now he’s basically inserted himself in the stirrups and the childbirth paperwork too.
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Presidents should be focused on federal issues
I toggled with this thought for a long time: Would I mind an Obama Account (or a Pritzker Account)? If it was a local politician, would it make me any difference? Would it have been OK with me if Senator Barack Obama came up with this idea for local Illinoisans to have automatic stock accounts versus President Barack Obama? Would the political party matter to me? Would I be more intrigued by this idea from a man who actually hangs out with and likes his kids, and who doesn’t talk about Malia and Sasha like a lewd construction worker? Would I understand it more from a guy who dresses up like “Skinny Santa” and is a natural at storytime with a large group of kids? Would I be cool with it if an 8-year-old was so impressed by him that he created Project I Am?
And my answer is still “no” to this type of account. While the Affordable Care Act wanted to offer the nation an opportunity to take care of their own kids, including parents before, during and after childbirth, he wasn’t trying to insert himself (or his name as a brand) on everything they did. He didn’t even come up with the name “Obamacare.” A 2007 article from trade journal Healthcare Financial Management did.
The Trump Account is just plain creepy. I recommend opting out, creating your own stock account and getting comfortable with learning how stocks work before your child turns 18.
Did you enjoy this post? You’re also welcome to check out my Substack columns “Black Girl In a Doggone World,” “BlackTechLogy,” “Homegrown Tales,” “I Do See Color,” “One Black Woman’s Vote” and “Window Shopping” too. Thanks for reading!