Government-Funded Investment Accounts for Children Launch July 4

Trump Accounts, a government-funded investment vehicle for children born during President Trump’s second term, will launch on Saturday, July Fourth. Each account will receive a $1,000 contribution from the Treasury Department that will be invested in the stock market.

Parents, employers, relatives and philanthropies can add deposits, which private investment firms will manage. Children cannot access the money until they turn 18, and withdrawals are limited to specific purposes such as buying a home or paying tuition.

Semiconductor company Micron announced it would invest $250 million into the accounts through an employee matching program. The company said it would match contributions of up to $1,000 per child under 18 for its workers. Micron also said it will make a one-time $250 deposit into accounts for children in counties where it has locations, including Idaho, New York, Virginia, California, Colorado, Minnesota and Texas.

The investments are expected to benefit roughly 1 million children. They are designed to help children under 18 build savings similar to individual retirement accounts. Billionaires have already boosted the accounts beyond the initial $1,000 government deposit.

Last year, the founder and CEO of Dell Technologies and his wife announced they will donate $6.25 billion to fund Trump Accounts. The couple will give 25 million American children $250 each to jumpstart their investment accounts. Questions remain about how the accounts will be funded.

The federal government will contribute $1,000 to each account.