There are, of course, a few problems with this definition:
1. Nobody has ever shown any evidence that anybody is having such babies. (Any assertion is true of the empty set...)
2. The creators of such a baby would have to wait 12 years or so before it would be old enough to be an effective terrorist. Compare this with the effort of recruiting a terrorist from existing US citizens who are already Muslims or can be converted to Islam.
2) an American-born terrorist
3) A derogatory term used to describe a baby born in the United States to immigrants since all immigrants must be terrorists