American kids of undocumented immigrants could get $1,000 'Trump Accounts' under late changes to GOP megabill

Senate Republicans scrambled to pass their multi-trillion dollar tax-and-spending package on Tuesday. In the flurry of last-minute changes, one unexpected twist affected proposed "Trump Accounts" for newborns that might complicate its path to President Donald Trump's desk.

Under the measure passed by the Senate in a razor-thin vote, the federal government would establish a tax-deferred investment account with $1,000 for every child born in the United States. The program would kick in for children born after Dec. 31, 2024 and before Jan. 1, 2029, aligning with the duration of Trump's second term in office. Beneficiaries could withdraw the cash starting at age 18 under certain circumstances such as paying for college. They would gain full control over the money at age 30, and parents could deposit up to $5,000 annually.

Along with other parts of the bill, the so-called Trump Accounts were amended to avoid losing the ability to pass the legislation with only GOP votes under the Senate's strict reconciliation process. And under the Senate-passed version, it would no longer be necessary for at least one parent to have a Social Security number to qualify for the program, according to two tax experts.

That means it's technically possible for undocumented immigrants to qualify for the program — an unusual outcome for a Trump-backed spending bill. Among Republicans, that raised eyebrows about unintended consequences from the GOP's sprint to the finish in the Senate.

"Creating a new social program that tells foreigners that if they cross the border illegally and have a child born here, they can get benefits courtesy of American taxpayers runs counter to the Republican agenda of securing the border," said George Callas, an ex-GOP aide now at research philanthropy Arnold Ventures.

"Seems… problematic…," Texas Rep. Chip Roy of the conservative House Freedom Caucus said in a post on X. Roy has expressed anger at the multitude of changes made to the House-passed version of the bill that added to its cost in the Senate. Another Republican, Missouri Rep. Eric Burlison, said "it keeps getting worse."

Spokespeople for Republicans on the Senate Finance Committee and Senate Majority Leader John Thune did not immediately return a request for comment Tuesday. The White House did not immediately respond to a request for comment.

It's already against the law for undocumented immigrants to qualify for Medicaid, SNAP and other safety net programs.

Republicans, though, are determined to tighten eligibility for federal assistance. Samantha Jacoby, a tax expert at the Center for Budget and Policy Priorities, said the child tax credit will soon require at least one parent to have a Social Security Number if the Senate bill becomes law. That could shut out at least two million children who are U.S. citizens, Jacoby said.

"It would be totally ironic that in the effort to squeeze more Social Security requirements for the child tax credit, [the GOP] accidentally create this new provision for undocumented parents to get this investment account," said Patrick Brown, a fellow at the Ethics and Public Policy Center. He added that he believes Republicans will tweak the provision down the road to foreclose that possibility.

He said Trump Accounts would have a limited effect in encouraging families to have more kids given the almost two-decade span to reap benefits from the cash.

"If there was no political outcry when the Biden [Child Tax Credit] expired, there's gonna be zero political outcry when this expires," Brown said, "because it's gonna be 14 years before anybody even starts to see any benefit from it."

The development drew derision from one Democrat. Sen. Brian Schatz of Hawaii let out a big laugh in an X post at the notion of Republicans accidentally creating a federal program that aids undocumented immigrants.

House Speaker Mike Johnson expressed a begrudging willingness to get the Senate legislation through the House by July 4. "I’m not happy with what the Senate did to our product. We understand this is the process," he said. "It goes back and forth, and we’ll be working to get all of our members to yes."