President Donald Trump rolled out his government-supported investment accounts for babies in the United States and urged American businesses to contribute to employees' family accounts.
According to Associated Press, A provision of Trump’s tax legislation, Trump Accounts are meant to give $1,000 to every newborn, so long as their parents open an account. That money is then invested in the stock market by private firms, and the child can access the money when they turn 18.
A US Treasury event on Wednesday brought together an assortment of politicians and celebrities, from Texas Republican Sen. Ted Cruz to rapper Nicki Minaj and NBC’s Shark Tank judge Kevin O’Leary, to discuss the program and its potential impact on the economy.
The investments will put money “in the hands of young Americans who otherwise have really started out with nothing,” Trump said. He also called on employers across the country to make matching Trump Accounts contributions for employee benefits, as some companies have already pledged to do so.
As part of the initiative’s launch, parents of older children are also encouraged to open accounts, but they won’t get the $1,000 bonus. That money is reserved for babies born during the calendar years of the Trump administration.
To qualify for the $1,000 seed money, a baby must be a U.S. citizen, have a Social Security number and be born between Jan. 1, 2025, and December 31, 2028. Any parent can open an account for a qualifying child, regardless of the parent’s immigration status.
It’s important to note that the child won’t be able to access the money until they turn 18, except in rare circumstances, so it can’t help with immediate expenses. And disbursements from the accounts will be subject to taxes.
