$1,000 will be deposited by the federal government into a new 530A retirement account for every U.S.-born child with a valid Social Security number.
The money is invested in the stock market and grows tax-free; after age 18, withdrawals can be used for education, a home down payment or starting a business.
Children born before 2026 can also receive family contributions until age 18, though the automatic federal $1,000 applies to newborns under the new law.
Annual contributions are capped at $5,000 from all sources, making the program both a federal seed investment and a long-term family savings vehicle.