Trump’s ideas to encourage a ‘baby boom’ won’t work. Here’s what will

As Americans are having fewer babies, the White House has been gathering ideas on what can be done to increase the birth rate. The New York Times reported that one of the ideas is a $5,000 “baby bonus” to entice women to have more babies, received after delivery. Other ideas being entertained to start a baby boom include: reserving 30% of scholarships for the Fulbright program, the prestigious, government-backed international fellowship, for applicants who are married or have children; government-funded programs that educate women on their menstrual cycles, so we understand when we ovulate and conceive; and a “National Medal of Motherhood” awarded to mothers with six or more children. 

While President Trump and his administration “want a baby boom,” none of these ideas address the root causes of why Americans aren’t having babies and why the annual birth rate is at a record low. Mothers don’t need a medal, they need meaningful family policies. If Trump truly wants a baby boom in his administration, here’s what the government can focus on delivering for all Americans: better maternal healthcare, national paid leave, affordable childcare including not ending Head Start, better public education including not closing the Department of Education, safer schools,and a better cost of living for all.

 And sure, the government alone can’t solve this problem. As the Edelman Trust Barometer survey reminds us that trust in government continues to decline, business continues to be “the default solution for societal issues because it is seen as outperforming government on competence.” The pressure on business leaders to step up—including from their own employees—shows no sign of disappearing, particularly when it comes to how to best support employees and their families. Private-company based solutions to public policy shortcomings will leave millions of Americans out, but it’s still in business owners’ interests to support the working parents they employ (both moms and dads).

In our workplaces, here’s a reminder of what leaders can begin to do to help all parents start and expand their families:

Support employees with buying their first home

One factor in the decline of U.S. birth rates is lack of affordable housing. According to a Clever Real Estate study, 70% of Americans are afraid of an impending housing market crash. And 32% of Americans are afraid they won’t be able to make housing payments as a result of today’s economy. Middle-class families in half in less than half of the U.S. can afford an average priced home. And If you can’t afford a home, you may be less likely to want to start a family.  

Here’s where leaders can step in: Offer resources and support your employees’ ability to purchase their first home. Partner with companies like Multiply Mortgage, a Denver based-company that offers employees one-on-one sessions with mortgage advisers, employee education sessions around the home purchase and financing process, and mortgage interest rate discounts of up to .75%. The company partners with a network of 15 to 20 lenders to access discounted interest rates. 

“Homeownership has become increasingly out of reach for many Americans, and we don’t expect interest rates to fall to the levels we saw in 2020 ever again,” shares Michael White, cofounder and CEO of Multiply Mortgage. White says companies work with them with zero cost to the employer, other than low administrative cost to promote the benefit internally to employees. For leaders, this can be a win-win. Employees who own their home and put down roots into a community are far less likely to leave your company and relocate somewhere else.

Partner with other companies to solve the childcare crisis

A recent Lendingtree study showed that it costs close to $300,000 to raise a child in the U.S. today, from the time they are born until they turn 18 years old. Costs have jumped 35.7% versus when the study was conducted in 2023. One of the biggest drivers of costs continues to be childcare, which is close to $18,000 a year. In places like the District of Columbia, Massachusetts, and Hawaii, the cost is closer to $25,000 a year. A $5,000 baby bonus (which may also be taxed) would hardly make a dent in that cost.

According to a recent HiBob report, only 15% of companies surveyed provide childcare-related benefits. Leaders can step into help solve another root cause then it comes to why Americans are having less babies: the childcare crisis. Employees need to be able to afford childcare, and have access to reliable, safe options so they can be fully present to contribute at work. Companies can partner with local childcare providers and negotiate a group discounted rate for their employees. They can also partner with Bright Horizons and bring a corporate day care to their location, and help fund the costs. If you can’t afford the cost on your own, and are worried about low utilization rates, find other companies to partner with you to build a daycare center in a location that all employees can access. Finally, you can provide a caregiver stipend to employees so that they can use that to pay family members or friends to help take care of their children. 

For leaders, this can be another win-win. Employees who can be fully present at work, and not worry about whether their children are being well taken care of, are able to make an impact. And we know there are limits to linking childcare coverage to a job. The most important thing an employer can do is to let their employees know they support their roles as parents, by offering support with childcare, and other related benefits, and most importantly, providing them flexibility to be there for their children as needed. 

Remember to focus on parental leave, not maternity leave

The U.S. still remains one of only seven countries that doesn’t guarantee any paid family leave. If companies are busy lobbying the U.S. government about lowering tax rates, preventing regulations, drug pricing, fossil fuel incentives, data privacy, and more, they should add paid family leave to that list. Until then, the burden remains on companies to offer leave to parents and help fill this societal gap.

As I discuss in my book, Reimagine Inclusion: Debunking 13 Myths to Transform Your Workplace, when we don’t offer parental leave, and focus only on maternity leave, we put the burden on mothers to constantly be the primary caregiver. I’ll never forget working for a leader who didn’t want to create a parental leave policy. His response to me was, “Why do we need to give dads time off when they have a kid? It’s the mom doing all the work, and the dad is on the golf course using this as vacation time. He needs to be back in the office.”

According to research from the brand Dove Men + Care, giving fathers time to bond with their child not only helps the other parent, but also later on, can lead to better behavioral outcomes when the child is in school. Fathers who are close to their children are healthier, and have stronger and happier marriages with their partners. In Sweden, the data shows that for “each additional month of paid parental leave taken by the father increases the mother’s earnings by 6.7%.” Imagine the positive ripple effect this can have on our society.

Finally, the stereotypes about fathers not helping when a child is born and playing golf, or not being lazy or useless or not good at parenting is not only damaging to fathers, but also to mothers. It’s up to all of us to shatter these stereotypes. Leaders need to support more men in taking parental leave, leaving work early to take their kid to doctor’s appointment to attend that school play, and being a public role model when it comes to all things parenting. And men who are leaders should be doing it themselves. If we want more women to become mothers, we can’t leave fathers out of the equation.

If the government refuses to address the declining U.S. birth rates with solutions that address the root cause, businesses will need to step up to support parents. Creating a society where we can start and expand our families and support both children and parents is best for everyone.