dailynewsnblog
By Manya Saini
July 4 (Reuters) – After months of fanfare, the Trump administration will launch its flagship cradle-to-adulthood investment program, Trump Accounts, on Saturday, as the United States begins celebrations marking the 250th anniversary of its independence.
Trump Accounts is central to the administration’s push to promote investing and financial literacy from an early age.
The program will provide U.S. citizens born between 2025 and 2028 a government-funded investment account of $1,000 that families can build on, adding a new savings vehicle to a raft of other tax-efficient college savings plans and retirement accounts.
“The $1,000 federal contribution at birth helps remove the barrier of having nothing to start with, which has historically been one of the biggest obstacles to saving,” said Andy Blocker, head of policy, regulatory and government relations at financial services firm Edward Jones.
“If by year-end more families have a clear onramp to begin saving and investing for their children’s financial futures, that’s success.”
CORPORATES RALLYING BEHIND EFFORTS
Several top U.S. companies have pledged support for the program, with employer matches or additional seed funding.
Participating companies include payment giant Visa, technology company Dell , and media and telecom firm Comcast. Earlier this week, chipmaker Micron pledged $250 million to support Trump Accounts.
The launch comes as the rising cost of living has become a major issue for voters heading into the November midterm elections. Policymakers across the spectrum have increasingly turned to proposals aimed at helping families build wealth and improve long-term financial security.
About 3.6 million children were born in the United States in 2025, according to provisional data from the U.S. CDC. While only U.S. citizens born during Trump’s second administration will receive the $1,000 government contribution, Americans can open a Trump Account for their children under age 18 with a valid Social Security number.
The Treasury Department is overseeing the program, with brokerage Robinhood and custodian bank BNY acting as administrators. The Treasury has warned families to be vigilant against scams and fraudsters, and has provided information on what to look out for.
The accounts are free to open, and parents, family members, employers and charitable organizations can contribute up to $5,000 on a pre-tax basis annually.
Contributions are automatically invested in a low-cost index fund designed for long-term growth. Account holders take control when they turn 18, at which point they can withdraw the funds or continue investing. Gains will be taxed upon withdrawal.
