Hope for new moms in baby bonus bill

Each year, hundreds of thousands of young women find themselves in that same bathroom, staring at that same pregnancy test, facing that same difficult choice. For many, the decision isn’t just about the right thing to do. It’s about economics. These women feel like they’re drowning with no support system — and they’re not wrong. Between healthcare costs, basic necessities, and broader price pressures, new parents are feeling the squeeze like never before.

According to the most recent analysis from the Peterson-KFF Health System Tracker, families with employer-sponsored insurance face an average of $2,743 in out-of-pocket costs for pregnancy, childbirth, and postpartum care. For a woman earning $15 an hour with no support network, that number might as well be $1 million.

But what if Congress did something about it? Last year, President Donald Trump endorsed the idea of a $5,000 “baby bonus” payment to new mothers. “Sounds like a good idea to me,” he said.

Trump was on to something. A direct cash infusion at the moment of birth can turn overwhelming financial pressure into manageable reality. It tells a scared young mother that she doesn’t have to choose between her baby and survival. It smooths out the sudden income shock from lost wages and upfront costs. And it directly tackles a major driver of America’s baby bust: the painful gap between the larger families Americans say they want, about 2.7 children on average, and the smaller ones they feel they can actually afford. 

Rep. David Valadao’s (R-CA) Supporting Newborn Parents Act offers a strong, practical starting point. This bipartisan legislation would establish a $2,000 newborn tax credit for working parents. But unlike other tax credits, the help is immediate and accessible. At the hospital, new mothers would fill out a simple form requesting an advance payment, right alongside registering for the baby’s Social Security number. Rather than wait months for a tax refund, parents can receive the money before bills pile up. 

The policy design is thoughtful and conservative. The credit phases in at 20% for every dollar of earnings, so households making just $10,000 would receive the full amount, reaching the working poor without creating dependency. It phases out at the same thresholds and rates as the Child Tax Credit, avoiding cliffs that penalize marriage or extra hours at work. To keep the tax code simple, it aligns with existing CTC rules on qualifying children and Social Security numbers. Families with volatile incomes can use either the current or prior year’s earnings, reducing improper payments while providing real flexibility for parents who work in the gig economy.

Fiscal conservatives shouldn’t panic. This isn’t a massive new entitlement. Even in a scenario where America’s Total Fertility Rate massively increases to two children per woman, American Principles Project projects a $2,000 newborn tax credit would cost no more than $9 billion a year to administer less than the Biden administration spent on “global health programs.” It’s a targeted, pro-work, pro-family tool that delivers relief exactly when it’s needed most, while investing in the future of this great nation: its people.

The newborn credit is not a panacea, but it does provide hope, and that could be the difference that allows a new mom to choose life. A $2,000 payment can cover those first critical weeks of diapers, formula, and rent, providing her with needed breathing room and an opportunity to plan her next steps. That’s a big deal. Let’s pass the Supporting Newborn Parents Act and send a message: America values babies, supports working parents, and refuses to accept the idea that raising children should only be an option for the economically privileged.

That’s exactly the type of message that will resonate with young mothers as they exit the employee bathroom.

Jon Schweppe is a senior advisor at American Principles Project. He previously served in the Trump administration as a senior policy advisor at the Federal Trade Commission. He is the author of the Populist Solutions substack. Follow him on X @JonSchweppe.