AsianFin — U.S. President Donald Trump unveiled a new policy initiative at a White House roundtable on Monday, proposing the creation of tax-deferred investment accounts for all American children born between January 1, 2025, and January 1, 2029.

Branded as “Trump Accounts,” the plan aims to give every newborn citizen a $1,000 government-funded investment into an index fund linked to the performance of the broader U.S. stock market. The account will be managed by the child’s legal guardian and designed to grow tax-deferred over time.

According to the proposal, guardians or private contributors may invest up to an additional $5,000 per year into the account throughout the child’s life. All funds must be allocated to index funds tracking the overall U.S. equities market.