It’s Donald Trump‘s world, and we live in it! Just four days before Trump turns 79, the administration held a roundtable at the White House on Monday to promote a critical element of the Republican-backed domestic policy bill: creating $1,000 investment accounts for every American newborn.
It is set to be called the “Trump Accounts” or “MAGA Accounts” (Money Accounts for Growth and Advancement). The initiative would provide $1,000 to each U.S. citizen child born between Jan. 1, 2025, and Dec. 31, 2028. The funds would be invested in stock market index funds and managed by the child’s legal guardians. The accounts will start at $1,000 per child, and guardians can add up to $5,000 annually throughout the offspring’s life.
As per CNN, White House Press Secretary Karoline Leavitt called the measure “life-changing” for working- and middle-class families, citing its inclusion in the broader “One Big Beautiful Bill,” which features major tax cuts and an expanded child tax credit. Moreover, Leavitt added that this latest initiative will help the country’s youth on the right financial path.
These funds are eligible to use after the child turns 18 (adult) and can be used for different purposes, such as education, vocational training, buying a home, or a car. The accounts are tax-deferred, indicating that these investments grow tax-free until withdrawal.
Similarly, House Speaker Mike Johnson talked about Trump Accounts and their long-term financial benefits. The event was held at the State Dining Room. Top leaders from Dell, Uber, Robinhood, Salesforce, Goldman Sachs, and ARM Corp. attended it. Many of these corporate employees liked the idea and urged them to use it for their kids.
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Meanwhile, Dell Technologies CEO Michael Dell, also present at the event, said that launching Trump Accounts was a bold move toward an “ownership society.” He claimed that Dell would invest in these accounts for all the children born to the company’s members. The event came as the Trump administration pushed for Senate approval of its comprehensive policy bill before the July 4 holiday (Independence Day).
Even though this new initiative is still under review and will likely face opposition from certain lawmakers and alleged Donald Trump haters, this government-funded seed investment will be a great plan for education. Due to increased prices, new courses, and a wide range of opportunities, education for kids has become quite expensive. The full amount from the Trump Accounts plan will be when the individual turns 30.
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This scheme seems similar to the 529 college savings plans (or Qualified Tuition Programs), which were introduced to save funds for a person’s education with no income limitations. Under this scheme, any American citizen above 18 years of age with a proper address and Social Security details could join.
Under the 529 college plans, no more than $10,000 may be withdrawn to pay a student loan, and the maximum lifetime limit is per beneficiary and sibling. In contrast, the Trump Accounts initiative has a lower annual contribution limit, and unlike a 529, the money can be used for various purposes, not only education.
Further updates regarding this latest and interesting plan are awaited. While NBC News was the first to report the scoop, other outlets have confirmed this in the last few hours. Stay tuned!
