Summary
Trump accounts are new savings accounts for children, introduced by congressional Republicans and linked to President Donald Trump’s second term. The government will put $1,000 into accounts opened for children born between 2025 and 2028, and families can add up to $5,000 a year, with funds invested in large Wall Street companies.Key Facts
- Trump accounts start on Saturday and are for children born from January 2025 to December 2028.
- The government deposits $1,000 into each new account.
- Parents, friends, and employers can contribute up to $5,000 per year to these accounts.
- The accounts are controlled by parents until children turn 18, when the children can use the money for college, buying a home, or starting a business.
- Deposits will initially be invested in a fund tracking the S&P 500 index, managed by State Street; other managers like BlackRock and Vanguard will join later.
- An app to manage the accounts is being developed by Bank of New York Mellon and Robinhood.
- Billionaires Michael and Susan Dell and Ray and Barbara Dalio have donated money to add extra funds for children in poorer areas.
- Some Republicans call the bill creating these accounts the “Working Families Tax Cuts Act,” claiming it has helped families with lower taxes.
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