President Donald Trump and his administration are looking at ways to increase the nation’s birth rate, and one solution may end up costing some money.
This idea comes as a report from the U.S. Centers for Disease Control and Prevention, U.S. Department of Health and Human Services, and the National Vital Statistics System showed low birth rates in the United States.
According to ABC News, outside groups have been sharing proposals designed to encourage people to get married and have children. One proposal, which President Trump said “sounds like a good idea to me,” is to give a $5,000 incentive to every mother in the United States after she gives birth.
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While specific details have not yet been released, here’s a look at how much such a “baby bonus” could cost the country and who may qualify for it.
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A Cost of Billions Annually
Even if the so-called “baby bonus” idea is very preliminary, it has many taxpayers wondering just how much such a move might cost.
According to CBS News, it could amount to more than $15 billion a year. That’s based on the assumption that the parent of every child born in the U.S. each year qualified for a $5,000 bonus.
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A ‘Bonus’ Without Clear Details
One perhaps frustrating aspect of this so-called “baby bonus” idea being talked about is that details are sparse. For instance, it’s not clear what other eligibility standards would be required beyond being a mother in the U.S. who gives birth.
Further, it’s unknown how much money would be given out under such a program. In fact, it’s not known where the money would come from to support this kind of incentive for parents.
Per The New York Times, one potential way this “baby bonus” could be distributed would be a newborn supplement to existing child tax credits. Whatever form the bonus for new parents might take, this kind of proposal would need approval from Congress to materialize.
Editor’s note on political coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on GOBankingRates.com.
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Sources
National Vital Statistics System, “Births: Provisional Data for 2024.”
ABC News, “Trump administration looking at $5,000 ‘baby bonus’ to incentivize public to have more children.”
CBS News, “Could a $5,000 “baby bonus” convince Americans to have more kids? Here’s what the data shows.”
The New York Times, “White House Assesses Ways to Persuade Women to Have More Children.”
This article originally appeared on GOBankingRates.com: $5,000 ‘Baby Bonus’: How Much It Could Cost and Who Qualifies
