Administration to launch investment accounts for newborns on July 4

The administration plans to open Trump Accounts on July 4, linking the launch to the 250th anniversary of the Declaration of Independence. gov for any child born between January 1, 2025, and December 31, 2028, provided the child is a U.S. citizen with a Social Security number.

The U.S. Treasury Department will deposit $1,000 into each qualifying account. Private banks and brokerages will manage the money, which must be placed in U.S. equity index funds charging no more than 0.10 percent in annual fees. Parents may contribute up to $2,500 annually in pretax income, and total yearly contributions are capped at $5,000, excluding gifts from governments or charities.

Eligibility and access rules Children cannot withdraw funds until they turn 18, and withdrawals are limited to tuition, starting a business, or a home down payment. Older children may open accounts but will not receive the $1,000 government contribution. The program was created in the same legislation that reduced spending on Medicaid and the Supplemental Nutrition Assistance Program.

Private contributions announced Several wealthy individuals and companies have pledged additional funds. One technology executive and spouse committed $6.25 billion for children age 10 and under living in lower-income ZIP codes. Another investor pledged $75 million for qualifying children in one state.

Several large employers, including technology and transportation firms, plan to add contributions to employee benefit packages.

Program goals and criticism Supporters say the accounts will expose more children to stock-market ownership and strengthen capitalism. One backer stated the accounts make every child a capitalist from birth. Critics argue the accounts provide no immediate help to families and may widen wealth gaps because higher-income households can contribute the maximum amount.

They also note the accounts coincide with cuts to food assistance and health coverage for low-income families. >"We’re doing something much better than giving the next generation a handout. " — Administration statement The Federal Reserve’s preferred inflation gauge reached a three-year high in May, and food prices have risen since the start of the current term.