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Peter Schiff says newborn Trump accounts will be repaid with interest
He argues the $1,000 federal deposit is funded through additional borrowing that increases future taxpayer interest costs, even as U.S. sign-ups reach 7 million and about $1.5 billion has already gone into the accounts since July 4.
About 1.7 million American babies are eligible for a $1,000 federal deposit under the Trump accounts program, but economist Peter Schiff argues the money will not be a net benefit. In an X post dated July 6, Schiff said the tax breaks tied to the program run only until after 2028 and that the accounts, in his view, will ultimately be repaid through higher public debt costs.
Schiff, chief economist at Euro Pacific Asset Management, contends the federal government does not have the funds to place $1,000 into accounts for each eligible newborn. Instead, he argues Washington raises the money by issuing more debt, which he says means the same children who receive the deposit today will later face taxpayers paying the interest.
According to the U.S. Treasury Department, sign-ups have reached 7 million since launch, and about $1.5 billion has gone into the accounts since July 4, including both government contributions and amounts added by families. The program allows any U.S. citizen child born from January 2025 through December 2028 with a Social Security number to claim a one-time $1,000 federal deposit, with sign-ups initiated through IRS Form 4547 or the trumpaccounts.gov portal.
After the initial deposit, parents or guardians can contribute up to $5,000 a year combined until the child turns 18, while an employer contribution is capped at $2,500. The Joint Committee on Taxation, as cited in the article, estimated total program spending of $15.2 billion for fiscal years 2025 through 2034 as of July 1, 2025.