WASHINGTON — Congressman Adrian Smith of Nebraska’s Third District has introduced legislation aimed at providing long-term financial support for future generations by making a federal newborn investment program permanent.
The proposal, titled the Trump Accounts for All Generations Act, would extend and expand a pilot program created under the Working Families Tax Cuts. The current program allows eligible newborns to receive a one-time $1,000 federal contribution into a tax-advantaged savings account, but it is set to expire at the end of 2028.
Smith’s bill would remove that expiration date and ensure all future eligible children continue to receive the initial investment. It would also tie the $1,000 contribution to inflation starting in 2029, allowing the amount to increase over time based on cost-of-living adjustments.
In a statement, Smith said the legislation is intended to build on the existing program and provide lasting financial benefits for families. He said the accounts give parents an opportunity to establish a strong financial foundation for their children from birth and warned the benefit could disappear without congressional action.
The measure is co-led by Representatives Blake Moore of Utah and Brian Jack of Georgia, both of whom supported the original creation of the accounts and are backing efforts to make the program permanent.
Under current law, parents, guardians, and other authorized individuals can contribute up to $5,000 per year into the accounts. The initial $1,000 federal contribution is available for children born between January 1, 2025, and December 31, 2028, provided the child is a U.S. citizen with a valid Social Security number.
The legislation would amend the Internal Revenue Code to eliminate the pilot designation and continue the program indefinitely. It also includes provisions to adjust the federal contribution for inflation and make related technical changes to federal tax law.
If approved by Congress, the changes would apply to taxable years beginning after December 31, 2026.