WASHINGTON — On July 4, President Donald Trump's administration will launch Trump Accounts, a program designed to promote financial independence for American children born during his second term. Parents can open investment accounts for these newborns, which will automatically receive $1,000 from the government.
Accounts may also be opened for older children who do not turn 18 before the end of the calendar year, although these accounts will not receive the initial $1,000 government contribution. Funds deposited by employers, philanthropies, and relatives will be invested in the stock market by private firms. Children will only be able to access the money once they turn 18, and then solely for specific purposes such as purchasing a home or funding education.
The initiative has attracted significant support from billionaires. Michael Dell, founder of Dell Technologies, and his wife, Susan, have pledged $6.25 billion to accounts for children who do not qualify for the government’s $1,000. Additionally, on July 1, Trump announced on Truth Social that Sanjay Mehrotra, CEO of Micron Technology, would contribute $250 million. Earlier in January, Trump revealed that investor Brad Gerstner would donate $250 to Trump Accounts for every child under age 5 in Indiana.
About 58% of U.S. households held stocks or bonds in 2022, highlighting the potential reach of this investment-based program.
The launch of Trump Accounts coincides with the 250th anniversary of the signing of the Declaration of Independence, symbolically linking the program to the nation's founding principles.
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