00:00President Trump is praising House Republicans after they narrowly passed his budget bill early this morning to enact some of
00:07his major agenda items.
00:09The president is calling this, quote, arguably the most significant piece of legislation that will ever be signed in the
00:14history of our country.
00:16The bill passed by a single vote after late night negotiations yielded just enough concessions to bring key GOP holdouts
00:23back on board.
00:24It now goes to the Senate, where it is still expected to face resistance.
00:28House Speaker Mike Johnson says he's confident it will be passed by July 4th, while some Democratic lawmakers are calling
00:34the bill in assault.
00:36We look forward to the Senate's timely consideration of this once in a generation legislation.
00:40We stand ready to continue our work together to deliver on the one big, beautiful bill, as President Trump named
00:47it himself.
00:48This is one big, ugly bill that House Republicans are trying to jam down the throats of the American people
00:58under the cover of darkness.
01:02One of the provisions included in the bill creates savings accounts for newborns with a one-time deposit of $1
01:08,000 from the federal government.
01:10The savings initiative, originally called MAGA Accounts, has been rebranded as Trump Accounts.
01:16Parents can contribute up to $5,000 annually into the accounts.
01:20Earnings grow tax-deferred and qualified withdrawals are taxed at the long-term capital gains rate.
01:26While similar savings plans already exist, experts say Trump Accounts do offer some advantages.
01:30I want to bring in CBS News contributor Javier David for more.
01:34He's the business editor for the Dallas Morning News.
01:36Javier, walk us through how these accounts work.
01:39So, look, let's set the stage with some important context.
01:41This is a modest policy attempt to address a very serious demographic problem that's morphing into an economic one, which
01:47is, for multiple reasons, birth rates are falling everywhere.
01:50So, life expectancy is up, but you don't have enough younger workers to replace them, to support the elders as
01:56they age, spread new growth.
01:57In comes these Trump Accounts.
01:59We're trying to sort of incentivize parents to have more children.
02:03So, who's eligible?
02:04Parents can open one for anyone under the age of eight.
02:07A bank of their choice.
02:09They get, only newborns get $1,000 of sort of seed money.
02:13In this case, where parents might fail to set up the accounts for their baby, the government will create one
02:18for you, but the contributions get capped at $5,000 a year.
02:22There's a limited exception for gifts.
02:24And the money can grow tax-free.
02:26But, like, the advantages are really not, as experts say, as beneficial as a 529 account.
02:35It really kind of works as an investment account.
02:37But the real advantages aren't all that clear, as spelled out in the law.
02:41So, do we know what the money can be used for, like how it would differ from a 529 when
02:45it can only be used, really, for educational and trade programs?
02:48And do we know who will be eligible for this?
02:51So, it's, again, very limited usage.
02:53You can use it to go to college.
02:54You can use it to buy your very first house.
02:57But that is about it.
03:00529 accounts, you know, conversely, work a little differently.
03:05They're much more advantageous.
03:07And there's a good story that just ran on Yahoo Finance.
03:09Several financial planners said the only real advantage is the seed money that some will get with newborns.
03:16So, the benefits don't really appear that great compared to other options that are already on the books.
