Trump's Tax Bill Expands Child Benefits With $2,500 Credit And $1,000 Savings Boost For Babies Born Through 2028

President Donald Trump's 1,000-page "big, beautiful bill" includes provisions that could increase tax credits for parents and introduce savings accounts for children.

What Happened: The proposed legislation includes a temporary bump to the child tax credit, increasing it by $500 to a total of $2,500 per child. It also raises the standard deduction for joint filers by $2,000, making it $32,000.

On top of these tax adjustments, the bill outlines a new savings program called "MAGA" accounts, short for "Money Accounts for Growth and Advancement."

Under this plan, the government would deposit $1,000 into accounts for children born between 2024 and 2028. Families would be able to contribute up to $5,000 every year, with restricted access until age 18 and full access by 30.

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Why It Matters: The provisions would be beneficial for millions of households, but they come at a cost. The multitrillion-dollar package has generated widespread criticism for including cuts to safety net programs like Medicaid, food stamps, and clean energy subsidies.

While some Republicans are advocating for even more cuts, others are resisting reductions to healthcare.

"They literally are trying to take health care away from millions of Americans at this very moment in the dead of night," said House Democratic Leader Hakeem Jeffries. Internal GOP disagreements concerning state and local tax deductions have further complicated negotiations, according to The Hill.

Sen. Bernie Sanders (I-Vt) called the bill “disastrous,” highlighting the $235 billion estate tax break to the wealthiest 0.2% of Americans. Economist Justin Wolfers compared the bill's approach to a "pure reverse Robin Hood."

Sen. Elizabeth Warren (D-Mass.) criticized Republicans for scheduling voting in late-night slots, alleging that the reason is to "hide" the fact that the bill "rips away health care from babies, new moms, and seniors."

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