Maryland Governor Praises New Federal Child Savings Accounts

Maryland's governor praised a new federal program that provides a $1,000 government deposit into investment accounts for U.S. citizen children born between January 1, 2025, and December 31, 2028. The governor made the remarks Tuesday during an interview on political commentator Clay Cane's show.

He said the accounts represent a policy that previous Democratic and Republican administrations had not enacted.

How the Accounts Operate The program was created under the One Big Beautiful Bill Act signed into law in July 2025. It became operational on July 4, 2026, with accounts managed initially by Robinhood and the Bank of New York. Parents, relatives, employers, state and local governments, and qualified nonprofits may contribute up to $5,000 annually per child.

The funds are invested in low-cost exchange-traded funds tracking U.S. stock indexes and cannot be withdrawn until the child turns 18. At age 18 the account converts to a traditional IRA. Withdrawals of earnings and certain contributions are taxed as ordinary income, with a 10 percent penalty generally applying before age 59½ unless an exception is met.

The governor compared the accounts to baby bonds proposals long advocated by Democrats and said the policy could help close the racial wealth gap. "I will give this administration credit for this," the governor said. "We've had Democratic presidents, Republican presidents, who have not been able to get this done.

And it actually got done. " He also criticized the broader legislation, citing tax cuts for billionaires and breaks for private-plane owners as measures that move efforts to address the racial wealth gap backward.