Every U.S. Newborn To Receive $1,000 Savings Account In Federal Program

(Cedar Rapids, IA) -- Starting January 1, 2026, every child born in the United States will receive a $1,000 government-funded savings account as part of a new three-year federal pilot program.

In Iowa, about 36,000 babies are born each year. Based on that figure, the program could create roughly $36 million in new savings deposits for Iowa families in its first year alone.

According to the U.S. Department of the Treasury, the accounts may be used when the child turns 18 for expenses such as higher education, buying a first home, or starting a business. Family members or employers may contribute up to $5,000 each year, and nonprofit organizations can add unlimited funds, though those donations will not be tax-deductible.

The Congressional Budget Office projects the program will cost about $42 billion over its initial run. More details are available from the U.S. Department of the Treasury.