President Donald Trump introduced the Trump Accounts initiative at a U.S. Treasury event on Wednesday, highlighting a program designed to give every newborn American child a financial start. Speaking before a crowd under a sign reading “Trump Accounts jumpstart the American dream,” Trump explained the plan’s mechanics and potential benefits.
“We’ll fund those personal accounts with a seed contribution of $1,000, which will compound and grow over the course of their lives,” Trump said, adding that parents, relatives, and employers could contribute up to $5,000 annually.
How Trump Accounts work
The initiative allows for modest contributions to grow into significant savings. Trump claimed each account could reach at least $50,000 by a child’s 18th birthday with regular contributions. Initial seed funds will come from the federal government, while high-profile private donors – including Michael and Susan Dell and billionaire investor Ray Dalio – have pledged additional support.
Trump highlighted Dalio’s $250 contribution for roughly 300,000 children under age 10 in Connecticut, while Gerstner pledged $250 per child under five in Indiana. The program also targets families in lower- and middle-income ZIP codes for additional donor contributions.
Enrollment and account management
Trump Accounts will be issued in the child’s name, with parents acting as custodians until age 18. Eligible children are those born between January 1, 2025, and December 28, 2028. Parents can enrol via the newly created IRS Form 4547, after which a financial institution will activate the account.
Accounts can accept further contributions once the program officially launches on July 5. Funds are invested in a diversified portfolio of low-cost index funds, designed for long-term growth with minimal risk. Withdrawals can be made for “qualified expenses” such as education, a first home, or starting a business, though some may be subject to restrictions and income taxation.
Experts weigh in
While the White House calls Trump Accounts “one of the most transformative policy innovations of all time,” economists have expressed caution. Analysts from Stanford University note the program may disproportionately benefit families able to contribute larger sums annually, leaving lower-income households with smaller gains.
Celebrity support at launch
The launch event included appearances from public figures such as Republican Sen. Ted Cruz, businessman Kevin O’Leary, and rapper Nicki Minaj, who referred to herself as Trump’s “number one fan.” The President also credited his “Big Beautiful Bill,” signed into law last Independence Day, as enabling the initiative through what he described as historic tax cuts.
Source: Time
Also read: Nicki Minaj publicly expresses support for President Trump
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