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Published: Feb 22, 2023 6 min read
Collage of Baby, Baby bottle, and dollar
Eddie Lee / Money; Getty Images

Some lawmakers want to give a $1,000 gift to every family that welcomes a baby.

A proposal that would give every American child $1,000 at birth — plus additional yearly payments for lower-income families — is once again gaining attention after progressive lawmakers recently reintroduced a bill in the House of Representatives and the Senate.

How 'baby bonds' would work

The proposal is commonly referred to as “baby bonds,” though the legislation is officially titled the American Opportunity Accounts Act. The act was introduced into the House and Senate last week by Rep. Ayanna Pressley, D-Mass and Sen. Cory Booker, D-N.J.

  • The American Opportunity Accounts Act would provide $1,000 to every American child at birth in a federally-funded, interest-bearing savings account.
  • Each year, families would receive an additional deposit into the account depending on their income. High-income earners would receive no additional deposit while families that earn below the poverty line would receive $2,000 per year.