WASHINGTON — On July 4, President Donald Trump's administration is launching Trump Accounts, a new program designed to promote financial independence for children born during his second term. The initiative coincides with the 250th anniversary of the signing of the Declaration of Independence.
Under the program, parents can open investment accounts for any child born during Trump's second term, 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, though these accounts will not receive the initial $1,000 government contribution. Funds in the accounts, including deposits from employers, philanthropies, and relatives, will be invested in the stock market by private firms.
Children will not have access to the funds until they turn 18, and withdrawals will be limited to specific purposes such as purchasing a home or paying for education.
The program has attracted significant private support. Michael Dell, founder of Dell Technologies, and his wife, Susan, have pledged $6.25 billion to the accounts of 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.
According to U.S. data, about 58% of American households held stocks or bonds in 2022, highlighting the program’s potential to expand investment participation among younger generations.
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