President Donald Trump hosted a White House roundtable on June 9 to promote a centerpiece provision of Republican policy legislation – a $1,000 investment account for every American newborn. The proposed “Trump Accounts” would be established for all children born between January 2025 and January 2029.
Program Details and Investment Structure
Under the plan, the government would deposit $1,000 into an index fund tied to the broader stock market for each newborn. Legal guardians would manage these accounts, with the option to contribute up to $5,000 annually from private sources. Funds would be strictly regulated: 50% could be withdrawn at age 18; full amounts could be used for education or entrepreneurship at 25; and complete access would be granted at 30.
White House Touts Economic Benefits
White House Press Secretary Levitt emphasized the transformative potential of the “Magnificent Big Act,” stating it would deliver “the largest tax cut in history” while creating the new investment program. House Speaker Johnson highlighted anticipated economic benefits including increased take-home pay and reduced bureaucratic burdens on small businesses.
Funding Mechanism and Corporate Participation
President Trump asserted the plan would come at “absolutely zero cost” to taxpayers, with funding derived from cross-border remittance taxes in the proposed legislation. Based on 2023 birth data, the initial government outlay would total $3.6 billion. Dell Technologies CEO Michael Dell pledged matching contributions for employees’ children, with executives from Uber, Goldman Sachs, and Robinhood indicating similar commitments totaling billions.
Financial Experts Raise Concerns
Unlike tax-advantaged education accounts, “Trump Accounts” would require after-tax contributions and impose capital gains taxes upon withdrawal. Alpha Financial Advisors CEO Ann Riley criticized the plan’s complexity, while wealth management professionals questioned its competitiveness compared to traditional savings vehicles despite corporate matching incentives.
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