Trump proposes universal investment plan, giving $1,000 in stock to every newborn
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Trump proposes universal investment plan, giving $1,000 in stock to every newborn
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On Monday, Trump hosted a roundtable at the White House to promote a key provision in the Republican Party's comprehensive domestic policy bill—a $1,000 investment account for every newborn American.
Under a pilot program passed by the House of Representatives, the government would establish these accounts for all U.S. citizen children born between January 2025 and January 2029, naming them "Trump Accounts."
The government-funded $1,000 will be deposited into an index fund tied to the overall stock market and managed by the child’s legal guardian.
Each child’s account would start with $1,000, and guardians or other private entities could contribute up to an additional $5,000 annually throughout the child’s lifetime. These funds would be invested in an index fund tracking the U.S. stock market.
Account beneficiaries could withdraw 50% of the balance starting at age 18. From age 25, they could access the full balance for qualified purposes such as small business loans and higher education. By age 30, beneficiaries would gain full control over the entire balance for any use. Contributions to these Trump savings accounts would be made with after-tax dollars and withdrawals would be taxed as long-term capital gains or ordinary federal income, unlike 529 college savings plans and Roth IRAs, which allow tax-free qualified distributions.
Karoline Leavitt, White House press secretary, said: “The passage of the Beautiful Big Bill will tangibly improve the lives of working- and middle-class families across America by delivering the largest tax cut in history, expanding the child tax credit, and creating the incredible new ‘Trump Account’ program, setting young Americans on the right financial path from the start.”
At Monday’s event, House Speaker Mike Johnson highlighted the economic benefits of the “Trump Accounts,” including increasing take-home pay for average families and reducing red tape for small businesses.
The event took place in the White House State Dining Room and was attended by senior executives from Dell, Uber, Altimeter Capital, ARM Corp, Salesforce, ServiceNow, Robinhood, and Goldman Sachs.
CEOs are expected to commit billions of dollars toward funding “Trump Accounts” for their employees’ children.
Michael Dell, CEO of Dell Technologies, attended Monday’s roundtable and said: “Establishing investment accounts for every child will provide significant financial support for their education, home ownership, and starting families. Dell Technologies will proudly offer a dollar-for-dollar match on the government’s seed investment for all children of Dell team members.”
He also stated: “This bold step toward universal ownership included in the Reconciliation Bill will bring profound benefits to the nation.”
The roundtable comes as the Trump administration intensifies efforts to secure Senate passage of the president’s domestic policy package before July 4.
NBC News first reported the event.
According to the latest data from the National Center for Health Statistics, there were 3.6 million births in 2023. At the current rate of $1,000 in government funding per account, the “Trump Accounts” would cost taxpayers $3.6 billion.
But on Monday, Trump claimed the government contribution would come at “absolutely no cost” to taxpayers, saying it would be funded through measures in the Beautiful Big Bill, including a 3.5% remittance tax on funds sent overseas.
Ann Reilley, CEO of Alpha Financial Advisors, told Yahoo Finance that the “Trump Account” holds “little appeal” for parents or other guardians, adding, “It seems the Trump administration is unnecessarily complicating things for no clear reason.”
Financial experts remain skeptical about whether this plan is the best option for parents looking to save beyond the initial $1,000 government gift, given its relatively limited tax advantages.
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