Defunding Planned Parenthood, border security: 5 provisions in the Big Beautiful Bill

5. Establishing Trump accounts and school choice scholarships 

The House version of the legislation authorizes the creation of Trump accounts that provide for the creation of trusts that can receive up to $5,000 in cash payments per year for the purpose of covering “higher education expenses” and “post-secondary credentialing expenses” as well as “amounts paid or incurred with respect to any small businesses for which the beneficiary has obtained any small business loan, small farm loan, or similar loan” and the expenses related to a first-time home purchase for the beneficiary. 

Beneficiaries of Trump accounts must be younger than 18. When beneficiaries reach the age of 18, all contributions must cease. When the beneficiary reaches the age of 31, the trusts “shall cease to be a Trump account.”

Under the Senate version, the Trump accounts are created to operate as “an individual retirement account.” It clarifies that Trump accounts can only be established for children born between Dec. 31, 2024, and Jan. 1, 2029. 

Another provision in both versions of the legislation enables students who belong to a household where the income is no more than 300% of the area median gross income and are eligible to attend primary or secondary school to receive scholarships from private organizations to pay for “qualified expenses” including private school tuition as well as books and instructional materials.