What's Behind the New Trump Child-Savings Accounts

Trump Accounts are tax-advantaged investment vehicles for children up to age 18, available regardless of parents’ income. During tax season, parents can open an account for their child and, for children born in 2025 to 2028, the federal government automatically deposits $1,000. Funds can be invested only in American companies, and parents serve as custodians until the child turns 18. Treasury Secretary Scott Bessent says more than 5 million children are already enrolled this year. Private donors are also supplementing accounts, including Michael and Susan Dell donating $6.25 billion to provide $250 to certain children too old for the $1,000, and Ray Dalio and Brad Gerstner planning similar state-focused initiatives.

"The 530A accounts, better known by their other official name, Trump Accounts, are set to launch on July 4. Much like existing child-savings accounts, these are essentially tax-advantaged investment vehicles. During tax season, any parents of kids up to 18 years old can open a Trump Account on behalf of their child, regardless of their income level; if the child was born in the years 2025 to 2028, they can also receive $1,000 in their account automatically, straight from the federal government."

"The money can be invested only in American companies, and parents are the account's custodians until their child turns 18. According to Treasury Secretary Scott Bessent, more than 5 million children have already been enrolled in the program this year."

"Trump Accounts have attracted wealthy backers from the private sector, who have agreed to supplement the accounts by offering additional money to qualifying kids. The tech billionaires Michael and Susan Dell are donating $6.25 billion to the program, which will put $250 into the accounts of certain children across the country who are too old to get the $1,000."

"Ray Dalio, the founder of Bridgewater Associates, is donating $75 million for a similar initiative in Connecticut, which can go to kids who do qualify for the $1,000, and Altimeter Capital CEO Brad Gerstner has said he's planning on doing something comparable in Indiana."

Read at The Atlantic