TAIPEI (Taiwan News) — The KMT and TPP have proposed a government-backed investment fund, the “Taiwan Future Account,” for children under 12, aiming to address Taiwan’s low birth rate and support children.
According to the Ministry of the Interior, Taiwan had about 2.26 million children aged 12 and under as of last year. At a Thursday conference, TPP Chair Huang Kuo-chang (黃國昌) said the program would provide an initial government deposit of NT$50,000 (US$1,600) per child, followed by annual contributions of NT$10,000 until age 12, per CNA.
Huang said the program would allow parental contributions to be tax-deductible to encourage participation. A child’s fund is estimated to grow to NT$339,000 by age 18 without parental contributions, or NT$561,000 if parents contribute NT$10,000 annually. Funds could be withdrawn upon adulthood for tuition, starting a business, or a home down payment.
KMT Chair Cheng Li-wun (鄭麗文) said the program would be funded through the government’s annual budget, including excess tax revenues and fiscal surpluses, requiring an initial NT$113 billion and around NT$26 billion annually thereafter. She said the fund would be managed by institutions and primarily invested in the Taiwan stock market without sector restrictions, and that the program would be reviewed every 10 years to ensure effective implementation.
Huang noted the program is modeled on US President Donald Trump’s “Trump Accounts,” a federal child savings and investment initiative set to launch in July 2026. Children born between this year and 2028 are eligible for a one-time US$1,000 contribution from the US government, while parents can make after-tax contributions of up to US$5,000 annually until the child turns 18.
Huang also highlighted Taiwan’s declining birth rate, noting the number of newborns has fallen from 180,000 in 2016 and may not reach 110,000 this year, meaning Taiwan has one of the world’s lowest birth rates.
In response, the Ministry of Health and Welfare said the program does not differentiate based on family income and needs careful review to prevent a fiscal burden. It added that the government should prioritize children from struggling families.
DPP Legislator Wu Szu-yao (吳思瑤) noted that since 2017, a government fund program has mainly supported children from low- and middle-income families, as well as those with long-term care needs. Jointly funded by the government and parents, the accounts had grown to over NT$3.2 billion by November, benefiting 38,892 children.
DPP Legislator Chung Chia-pin (鍾佳濱) cautioned that the proposed program could breach Article 70 of the Constitution, which bars the Legislative Yuan from increasing the Cabinet’s budget and gives the Cabinet sole authority over fund allocation.
