President Donald Trump unveiled a new policy proposal on Monday, June 9, aimed at promoting long-term financial security for American children.
The plan, dubbed “Trump accounts,” would provide every child born between January 1, 2025, and December 31, 2028, with a $1,000 investment account funded by the federal government.
Speaking at a White House roundtable with over a dozen CEOs from top companies like Uber, Goldman Sachs, and Dell Technologies, Trump explained the details of the proposal.
“For every US citizen born after December 31, 2024, before January 1, 2029, the federal government will make a one-time contribution of $1,000 into a tax-deferred account that will track the overall stock market,” he said.
The accounts would be controlled by the child’s guardians, allowing them to make additional private contributions of up to $5,000 annually. Trump described the initiative as “a pro-family initiative that will help millions of Americans harness the strength of our economy to lift up the next generation”.
The proposed investment accounts are part of a broader bill aimed at cutting taxes and bolstering border security. House Speaker Mike Johnson praised the plan, calling it “a bold, transformational policy that starts every eligible American child from a financial head start”.
Johnson added, “Republicans are proud of the party that we have always been. It supports life and families, prosperity and opportunity”.
The funds in these accounts would grow tax-deferred, with the child gaining access to them at age 18. They could then use the funds for significant life milestones such as education, purchasing a home, or launching a business.