The United States is not alone in facing a declining birth rate. With the exception of countries such as India, Nigeria, and Egypt, where populations continue to grow rapidly, most developed nations—including China—are experiencing falling fertility rates. Demographers generally consider 2.1 children per woman the replacement level needed to maintain a stable population.
Everyone knows that life is becoming more expensive. The economy rises and falls, while the pace of society seems to change as quickly as the climate. Young men and women want to enjoy life, pursue higher education, become financially independent, and avoid being tied down by the responsibilities of raising children.
As a result, many young adults may still marry, but having children increasingly follows a “three-delay” pattern: delay dating, delay marriage after falling in love, and delay having children after marriage.
The declining birth rate, combined with contraception and legal abortion, has contributed to a shortage of younger people who can eventually replace an aging population. At the same time, advances in medicine are helping older adults live longer. Celebrating a 90th or even 100th birthday is no longer as unusual as it once was—even within the Vietnamese American community.
The current administration also wants to prevent so-called “birth tourism,” in which a pregnant woman travels to the United States to give birth so that her child becomes a U.S. citizen and may later sponsor relatives for immigration.
The U.S. fertility rate is currently approximately 1.63 children per woman. According to the Centers for Disease Control and Prevention, about 3.6 million babies were born in 2025, nearly 1% fewer than the 3.63 million born in 2024.
Although the overall U.S. population continues to grow, the country has recorded about 710,000 fewer births annually compared with 2007.
Alongside the issue of declining births is the number of pregnancies that end in abortion. According to figures from the Guttmacher Institute, approximately 1.126 million legal abortions occur each year, and that number has been increasing rather than declining.
It is also helpful to consider the crude death rate in the United States, estimated at approximately 9.33 deaths per 1,000 residents. To compare births and deaths properly, both figures must be calculated per 1,000 people. The birth rate is approximately 11.98 per 1,000 residents, compared with a death rate of 9.33.
Excluding immigration, the difference is:
11.98 births − 9.33 deaths = 2.65 people
In other words, for every 1,000 residents, the U.S. population increases naturally by approximately 2.65 people per year. Over the long term, however, if the fertility rate remains at only 1.63 while older adults continue to live longer, the United States will eventually have far more older people than young people.
Encouraging People to Have Children
Because the balance between generations has become increasingly uneven, many countries have established funds and benefit programs to help mothers and families after the birth of a child.
The United States has lagged behind many other countries in this area. A new initiative introduced earlier this year, commonly described as a “Baby Bonus Program,” provides a $1,000 financial head start for an eligible child, regardless of whether the baby is a boy or a girl.
During a press conference about the program, Treasury Secretary Scott Bessent emphasized the administration’s goal of building long-term financial security for millions of children through tax-advantaged investment accounts available to eligible Americans under age 18.
In many countries, young adults value independence and personal freedom. Even after getting married, they may hesitate to have children because raising a family is expensive, time-consuming, and demanding. Parents must think not only about daily care, but also about education, discipline, health, and their children’s long-term future.
For these reasons, Japan, South Korea, Singapore, Russia, and many other countries have introduced financial assistance and paid parental leave to encourage people to have children. These countries are also dealing with rapidly aging populations as improved healthcare allows people to live longer.
Some governments provide housing assistance, diapers, formula, childcare, and educational support until children reach adulthood.
In France, for example, a mother may take six weeks of maternity leave before giving birth and 10 weeks afterward. Parents may also qualify for extended paid leave and other benefits. The government covers many prenatal and postnatal medical expenses, as well as part of the cost of childcare. Additional assistance may be available if a mother must stop working or reduce her hours to care for her child.
South Korea offers generous support because its fertility rate is exceptionally low. A newborn may receive an initial benefit ranging from approximately $1,500 for a first child to $3,000 for a second child. Parents and children may receive monthly assistance of about $1,500 during the first 12 months and approximately $750 per month until the child turns two.
From ages two through eight, a child may receive approximately $65 per month, along with health insurance coverage. Pregnant women may also receive comprehensive medical assistance, including prenatal care, childbirth expenses, transportation, and medical examinations. Additional benefits may be available from local governments and employers.
The United States does not have one comprehensive nationwide program comparable to those systems. Traditionally, there has been no universal cash bonus for having a child, although individual states may offer paid family leave, tax credits, and other assistance.
The new “Baby Bonus Program,” commonly associated with the “Trump Account,” represents a different approach. It was created under the One Big Beautiful Bill Act, which was passed by Congress and signed into law.
Eligibility Requirements
For people approaching or already in retirement, having another child may be unlikely—although not impossible. For their children and grandchildren, however, meeting the program’s requirements may be much easier.
The basic conditions include:
- The child must be born between January 1, 2026, and December 31, 2028.
- The parents must be U.S. citizens.
- The child must have a Social Security number.
- The parents’ income does not affect eligibility.
- If the parents do not apply for the child, the IRS may automatically establish an account during the following tax-filing season.
The initial $1,000 cannot be withdrawn to purchase diapers, formula, or other immediate necessities. Instead, the money is invested in the stock market, such as through a fund tracking the S&P 500.
Parents may contribute up to an additional $5,000 per year until the child turns 18. Investment growth is tax-deferred, meaning taxes generally are not paid on the account’s annual earnings while the money remains invested.
When the child turns 18, the account is converted into a traditional IRA. At that point, the account owner may be able to withdraw money for purposes such as buying a first home, starting a business, pursuing higher education, or continuing to invest.
At age 30, the account owner may use the money for any purpose, although applicable taxes would be due upon withdrawal.
Federal and state governments will continue to offer existing food and nutrition programs for lower-income families, including EBT, SNAP, and WIC. These programs help eligible families purchase groceries, formula, baby food, and other necessities for mothers and young children.
Summary and Potential Benefits
According to media reports, more than six million people have applied to participate in the Baby Bonus Program. Of those, more than 1.4 million children reportedly qualify for the $1,000 Treasury contribution deposited directly into their accounts.
The 1.4 million enrolled children represent only about 39% of the babies born since January 1, 2026. Many other eligible children have not yet been enrolled. Under the program’s rules, the IRS is expected to establish Trump Accounts automatically for eligible children who remain unenrolled when the 2027 tax-filing season begins.
If a child is born today and the money remains invested until age 30, the account could grow substantially under favorable economic and stock-market conditions.
For example, the initial $1,000 contribution, combined with additional family contributions of up to $5,000 per year, could potentially grow to approximately $1.7 million under highly favorable assumptions, according to an AI-generated projection.
It is important to emphasize that this is an optimistic estimate based on an average annual return of approximately 8%. Actual investment performance could be higher or lower, and no future return is guaranteed.
A Trump Account is essentially a long-term investment account intended to help children begin building financial security from birth. Because the program is scheduled to become fully operational on July 4—the 250th anniversary of the United States—it is still too early to determine whether it will influence decisions about marriage, childbirth, or abortion.
The program is part of a broader policy strategy intended to encourage childbirth. Other policy changes include reductions in Title X funding and restrictions on access to abortion medication. However, there is not yet enough evidence to determine whether these measures will reduce the abortion rate in the United States.
More information about Form 4547 is available at TrumpAccounts.gov.
By Đức Hà
Special to HuuTri.org