Efforts to Increase U.S. Birth Rates: Financial Incentives Unveiled

Close-up of baby feet lying on blanket.

President Trump proposes a $5,000 “baby bonus” for new mothers to combat America’s declining birth rates, while critics question if the one-time payment is enough to offset the substantial costs of raising children.

Top Takeaways

  • Trump is considering a $5,000 cash incentive for new mothers to boost America’s declining birth rates, which reached their lowest level since 1979 in 2023
  • Additional proposed measures include reserving 30% of Fulbright scholarships for married applicants or those with children
  • Educational programs to help women understand menstrual cycles and fertility are part of the comprehensive approach
  • The initiative is inspired by Hungary’s family incentive system, although critics note Hungary has not seen significant birth rate increases despite similar measures
  • Critics argue the $5,000 bonus is insufficient compared to the estimated $23,000 annual cost of raising a child

Trump’s Plan to Boost American Families

In a bid to address America’s declining birth rates, President Donald Trump has put forward a proposal to offer new mothers a $5,000 “baby bonus.” The initiative comes as the United States recorded its lowest number of births since 1979 last year, with the average number of children per American family dropping to just under two. “Sounds like a good idea to me,” Trump reportedly said about the proposal, which is currently under consideration by White House officials who are meeting with policy experts to develop comprehensive strategies for encouraging larger families.

The plan draws inspiration from Hungary’s reward system, which includes tax deductions and credits for each child, along with income tax exemptions for mothers with four or more children. Beyond the monetary incentive, Trump’s proposal includes reserving 30% of Fulbright scholarships for married applicants or those with children, and creating educational programs to help women understand menstrual cycles and ovulation to assist with conception planning. The White House has not yet decided which specific plans will be implemented.

America’s Fertility Challenge

The Centers for Disease Control and Prevention reported 3.6 million births in the United States in 2024, with a slight increase in fertility rates primarily driven by Asian and Hispanic women. Despite this modest improvement, the overall trend shows birth rates declining significantly since their peak in 1990 at 16.7 births per 1,000 people. Demographics specialists have noted that birth rates among teenagers and younger women are decreasing, while more women in their 30s and 40s are having children, contributing to an overall reduction in family size.

“The President wants America to be a country where all children can safely grow up and achieve the American dream,” said White House Press Secretary Karoline Leavitt, who added that Trump “is proudly implementing policies to uplift American families.”

Fertility issues are expected to be a significant focus in the administration’s efforts to achieve what some are calling a potential “baby boom.” In line with this focus, Trump has promoted in vitro fertilization (IVF) and signed an executive order to expand its access and affordability, demonstrating a multi-faceted approach to addressing fertility challenges.

Support and Skepticism

The fertility initiative aligns with conservative values that emphasize the family as society’s cornerstone, as outlined in Project 2025. The Heritage Foundation, a right-wing think tank, is reportedly involved in discussions about increasing birth rates and researching causes of infertility. High-profile supporters like Elon Musk have expressed significant concerns about declining birth rates, with Musk stating that “collapsing birth rates will cause any species to go extinct” and that “humanity is dying.”

“A $5,000 baby bonus is wasteful and won’t make a dent, especially among middle to upper class families,” argued commentator Maggie Anders, who criticized the incentive as insufficient compared to the high cost of raising a child, which averages $23,000 annually.

Some officials have proposed even more ambitious measures. Transportation Secretary Sean Duffy has suggested allocating more funding to areas with higher birth rates, signaling a potential shift in how government resources might be distributed to support family growth. Despite the range of proposals, critics remain skeptical about whether financial incentives alone can effectively reverse deeply rooted demographic trends that have persisted for decades.