U.S. President Donald Trump noted that he is pushing for a 'baby bonus' policy that provides $5,000 (about 6.7 million won) per child.
According to the Associated Press on the 23rd (local time), President Trump publicly unveiled the baby bonus proposal that day, calling it 'a good idea to boost the birth rate.' The White House also added that it is 'reviewing the childbirth encouragement package from various angles.'
This policy aims to encourage childbirth. However, only parents who have registered their marriage can receive support. The proportion of children born to single mothers among all newborns in the United States stands at 39.8%. As a result, there are criticisms that it is 'halfhearted,' having already excluded four out of ten at the policy design stage.
Major women's organizations criticized this policy as an ideological approach that imposes a traditional family structure. The Chamber of Mothers stated that the '$5,000 one-time bonus does not even cover the cost of diapers.'
The nationwide average childcare cost in the United States is approximately $11,582 (about 15.5 million won) annually, accounting for 10% to 32% of average household income. The $5,000 only covers five months of childcare expenses. In a CNBC poll, 75% of respondents said they prefer 'public childcare support to one-time cash payments.'
The monthly magazine Vanity Fair assessed that 'the average expense for maternal health care after childbirth stands at $14,000, making the $5,000 subsidy vastly insufficient.'
The Trump administration's proposal for a 'National Motherhood Medal' in conjunction with the baby bonus has also sparked controversy. Under this policy, women with six or more children can receive an award from the state. The New York Times pointed out that this could reinforce the perception of women as tools for childbirth.
The availability of budget allocation remains unclear. According to the Centers for Disease Control and Prevention (CDC), the number of newborns in the United States last year was recorded at 3.67 million. To provide $5,000 to all of them would require an annual budget of $18.3 billion (about 24.5 trillion won). The Congressional Research Service (CRS) warned that 'it is impossible to implement with the current budget allocation' and that 'raising taxes or increasing deficits is inevitable.'
The U.S. birth rate has sharply declined from 2.12 in 2007 to 1.64 in 2024. The birth rate necessary for population maintenance is 2.1. Harvard demographers stated, 'While one-time cash payments may have a short-term effect, structural support is essential to raise the birth rate in the long run.'
International examples support this. When Canada provided $2,000 in cash through the Canada Child Benefit (CCB), the birth rate temporarily increased. However, it returned to its previous level within three years. South Korea also provides significant childbirth and childcare support worth 170 million won for families with multiple children. Nevertheless, the domestic birth rate still remains at 0.78.
In contrast, Sweden maintains a total fertility rate of 1.66 with a 480-day paid parental leave policy that both parents can use.
A White House official explained, 'The decline in birth rates is an issue directly related to national security and the economic future,' adding, 'We are reviewing all possible policies.' The Republican leadership, which is the ruling party, also said, 'Low birth rates are a security issue,' demanding swift action.
In contrast, the Democratic Party stated that it would prepare hearings, arguing that 'this infringes on reproductive rights guaranteed by the Constitution.' The Democratic leadership criticized that 'the Trump administration's approach is a stopgap measure' and emphasized the need for comprehensive social safety net strengthening.
Some experts argue that without implementing paid parental leave, low-cost childcare facilities, and medical investments for maternal health recovery, it will be difficult to rebound the birth rate. Notably, the baby bonus policy involves three intertwined issues concerning budget, equity, and constitutional infringement, making it unlikely to pass through Congress this year.
The British media Guardian cited findings from the Brookings Institution, stating that 'President Biden's administration previously implemented a maximum $3,600 (about 5.2 million won) child tax credit in 2021, but the changes to the birth rate were minimal.'