Rep. Adrian Smith (R-NE), a member of the tax-writing Ways & Means Committee, has introduced a bill to make the Trump Accounts program permanent. H.R.8313 would eliminate the2028 expiration date of the pilot program that allows a federal $1,000 contribution to Trump Accounts for children.

Under current law, the $1,000 federal contribution is available for Trump Accounts set up for children born between 2025 and 2028. The Smith bill would permanently extend the program. It also provides for an inflation adjustment, starting in 2029, for the $1,000 contribution. The bill also permanently extends the program’s authorization of up to $5,000 annually in taxpayer contributions to Trump Accounts for Children.

Prospects: It is early days yet for the new Trump Accounts for Children program, but so far it appears to be quite popular both among Republicans and some Democrats. Thus, chances are a bill to make the program permanent has good odds for enactment.

However, there almost certainly will be a steep revenue cost—or at least a debate about it (some lawmakers believe that extending expiring tax rules represents current policy and so is not subject to a revenue-losing revenue score). Plus, the Trump Accounts for Children program is but one of a slew of expiring popular new tax breaks. So, it will be competing for limited resources with such expiring tax rules as the new deduction for middle income seniors, tax-free overtime pay, a limited amount of tax-free tips, and a deduction for interest paid on loans to purchase American-made cars. In addition, chances for a new tax bill are dim until at least after the November mid-term elections. Consequently, chances for this bill’s enactment into law this year are mixed at best.

NAIFA Staff Contact: Jayne Fitzgerald – Director – Government Relations, at jfitzgerald@naifa.org