Is the Trump Administration’s $5,000 Baby Bonus a Long-Term Solution for Families?
Written by
Heather Altamirano
Edited by
Angela Corry
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In an effort to combat the declining birthrate, President Donald Trump wants to persuade more Americans to get married and have babies with a new proposal called the “baby bonus” that would pay $5,000 to mothers.
While Trump and Vice President JD Vance push a pro-natalism agenda, financial experts don’t believe the one-time check will be enough to entice women to have babies. As grocery, daycare, health care and housing costs keep getting higher, the expense of raising a child is up 35.7% from 2023, according to a recent LendingTree study.
Families spend 22.6% of their income, or $29,419 a year to cover food, clothing, transportation and child care for a small kid, per the data. That totals $297,674 over 18 years.
Here’s why experts say $5,000 won’t help cover the financial needs required to raise a child.
It’s Not a Long-Term Solution
There’s no question that many women and families could use extra cash, but $5,000 helps for a limited time, while the parents have to worry about finances for years after.
“As a business owner, father, and someone who understands both finance and family dynamics, I can tell you this: a one-time $5,000 bonus might sound appealing upfront, but it’s not a long-term solution,” Danny Ray, Founder of PinnacleQuote, “The Life Insurance Experts,” explained.
“Raising a child today costs hundreds of thousands of dollars, so while a bonus may help cover diapers or daycare for a few months, it doesn’t address the real challenge, sustained support.”
Women Aren’t Having Babies for Many Reasons
The skyrocketing cost of living is reason enough to hold off on starting a family, but there are other factors that are prolonging or stopping women from having babies.
“Last October, I consulted with a bunch of young couples about their family planning decisions and money was only part of the equation,” money expert Andrew Lokenauth stated. “Women also have other concerns, such as work-life balance, career impacts and the general chaos of raising kids in today’s world.”
More Programs Are Needed to Help
In order for more Americans to consider expanding their families, additional assistance is needed.
“The data I’ve analyzed shows that one-time payments don’t really move the needle on birth rates,” Lokenauth explained. “Countries that have successfully boosted fertility rates — like France and Sweden — they’ve implemented comprehensive support systems. We’re talking paid parental leave, subsidized child care, healthcare coverage, the works. Throwing $5,000 at people is like putting a band-aid on a broken arm.”
Trump is Sending Mixed Messages
Trump has always campaigned on pro-family values, yet he’s allowed DOGE to slash the budget for several essential programs that greatly help children and families.
“Above all, cutting programs like Head Start, programs that help level the playing field for children in low-income families, sends a mixed message,” Ray stated. “It’s like giving someone a down payment while taking away the foundation.
“In fact, investing in early childhood education has a much higher return on investment than a single cash bonus.”
No Mention of Rising Childcare Costs
Another miss on Trump’s part is not addressing how expensive childcare is.
“This proposal completely ignores the massive childcare crisis we’re facing,” Lokenauth pointed out. “In most major cities, daycare costs more than rent (I’m not even exaggerating). I’ve worked with families paying $2K+ per month for infant care. That $5K bonus: Gone in less than 3 months.”
How Much Money is Really Needed?
According to Lokenauth, a lot more money is needed for a baby bonus.
“From my policy analysis, I’d say we need a minimum investment of $30-50K per child, plus ongoing support systems, to meaningfully impact birth rates,” he noted. “The current proposal feels more like a political gesture than a serious attempt to address our demographic challenges.”
He added, “One woman told me she’d need closer to $50K upfront to even consider having a baby — and that’s not even factoring in the ongoing costs.”
Is This The Future?
As of now, Trump is listening to different ideas and forming a plan to incentivize others to grow their families, but money experts predict a mere $5,000 won’t entice many.
“It’s sorta like offering someone $500 to move across the country,” Lokenauth stated. “Nice gesture, but completely disconnected from the actual scale of the decision.”
Ray added, “Overall, if the goal is to truly encourage family growth and stability, we need both short-term incentives and long-term programs that give children a fighting chance from day one.”
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