Overview

• The Trump White House is considering a $5,000 baby bonus for new mothers to encourage higher U.S. birth rates, but the proposal has been widely criticized for its limited impact.
• Critics highlight that the one-time payment pales in comparison to the $13,000 average annual cost of raising a child in the U.S., with some regions exceeding $20,000 per year.
• Analysts suggest reallocating the estimated $18.3 billion annual cost of the bonus to structural investments like paid family leave and universal childcare for greater long-term benefits.
• The U.S. remains one of only seven countries without guaranteed paid maternity leave, forcing many women to choose between employment and family.
• Comparisons to past programs, such as the Biden administration’s $24 billion childcare investment under the American Rescue Plan, show more significant impacts on affordability, maternal employment, and childcare worker wages.