Are Trump Accounts the same as Baby Bonds?

No. Trump Accounts are an opt-in, universal program with no income targeting. Baby bonds are a proposed policy (never passed into federal law) that would provide larger deposits to lower-income families. Some states like Connecticut have implemented their own baby bonds programs.

Which gives more money to low-income families?

Baby bonds proposals typically gave more to lower-income families (up to $2,000–$50,000 depending on the proposal). Trump Accounts give the same $1,000 to all qualifying children regardless of income. The Dell Foundation pledge adds $250 for children in lower-income ZIP codes.

Trump Accounts vs Baby Bonds: What's the Difference?

Q: Did Trump Accounts replace baby bonds?

Trump Accounts are sometimes compared to baby bonds proposals, but they are a separate policy. Baby bonds proposals (like Senator Cory Booker's ASPIRE Act) were never passed at the federal level. Trump Accounts are the policy that became law under the OBBBA.

Last verified: 2026-02-12

Key Takeaway

Trump Accounts: Real, signed into law (OBBBA, July 4, 2025). Universal $1,000 deposit. Opt-in via Form 4547.
Baby Bonds: A policy concept proposed but never passed at the federal level. Some states have implemented versions.
Key difference: Trump Accounts treat all families the same. Baby bonds proposals targeted more money to lower-income families.

"Baby bonds" is a term for government-funded savings accounts given to children at birth. Several versions have been proposed over the years. Trump Accounts are sometimes called "baby bonds" in the media, but they're a distinct policy. Here's how they compare.

Policy Comparison

Feature	Trump Account	Baby Bonds (Proposals)
Status	Signed into law (OBBBA 2025)	Proposed (never passed federally)
Federal deposit	$1,000 (same for all)	$1,000–$50,000 (income-based)
Income targeting	None — universal	Yes — more money for lower-income families
Opt-in required?	Yes (File Form 4547)	Most proposals: automatic at birth
Annual government contributions?	No (one-time $1,000 only)	Some proposals: up to $2,000/year based on income
Family can contribute?	Yes — up to $5,000/year	Most proposals: No additional contributions
Employer contributions	Up to $2,500/yr (§128)	Not included in proposals
Investment options	S&P 500 / U.S. equity index	Varied by proposal (some: Treasury bonds only)
Access age	18 (converts to IRA)	Varied: 18, 21, or 25 depending on proposal
Use restrictions	None at 18 (but IRA tax rules)	Some proposals: education, homebuying, retirement only

Key Policy Differences

Universal vs Income-Targeted

Trump Accounts give every qualifying child the same $1,000. A billionaire's baby gets the same deposit as a minimum-wage worker's baby.

Baby bonds proposals (like Senator Cory Booker's ASPIRE Act or the American Opportunity Accounts Act) typically scaled deposits based on family income — giving significantly more money to children from lower-income households.

One-Time vs Annual

Trump Accounts provide a single $1,000 deposit. Families can then contribute up to $5,000/year on their own. Baby bonds proposals often included annual government contributions of $500–$2,000, funded entirely by the government.

Family Participation

Trump Accounts are designed for family and employer participation — you can add money and your employer can match. Most baby bonds proposals didn't allow private contributions, keeping the accounts purely government-funded.

ℹ️ State-level baby bonds programs

While baby bonds never passed at the federal level, some states have implemented their own versions. Connecticut's CT Baby Bonds program (2021) provides $3,200 to children born on Medicaid. Washington, D.C. has a similar program. These state programs operate independently of Trump Accounts.

The Dell Foundation: Bridging the Gap

Michael and Susan Dell pledged $6.25 billion — $250 per child under 10 in ZIP codes with median income below $150,000. While this doesn't fully replicate income-targeted baby bonds proposals, it does add a progressive element to Trump Accounts, giving more support to children in lower-income communities.

Frequently Asked Questions

Are Trump Accounts "baby bonds"?

The media sometimes uses the term, but Trump Accounts are a distinct policy. True baby bonds proposals (ASPIRE Act, American Opportunity Accounts Act) had income-targeted deposits and government-funded annual contributions. Trump Accounts have a flat $1,000 deposit and rely on family/employer contributions.

Can I still get baby bonds from my state?

It depends on your state. Connecticut, Washington D.C., and a few other jurisdictions have their own baby bonds programs. These are separate from and in addition to federal Trump Accounts.

Which policy gives more to poor families?

Baby bonds proposals gave significantly more to lower-income families. The ASPIRE Act, for example, would have provided up to $2,000 per year for the lowest-income children. Trump Accounts give the same $1,000 to everyone, though the Dell pledge adds $250 in lower-income ZIP codes.

This is educational content, not political commentary. Source: IRS Notice 2025-68.