Nicolai Haugsted
More than half a million babies receive surprise payment from Trump administration.
Building wealth from birth has become the latest goal of the Trump administration.
President Donald Trump announced Monday that the first government-funded deposits have now been made into more than 500,000 newly created “Trump Accounts,” a savings initiative designed to give eligible American newborns an early foothold in the stock market.
The announcement came during a White House event attended by senior executives from both the New York Stock Exchange and Nasdaq, says Reuters.
$1,000 invested at birth
Under the new initiative, every eligible child born in the United States between 2025 and 2028 will automatically receive a government-funded $1,000 investment.
Rather than sitting in a traditional savings account, the money will be placed into a low-cost stock market index fund intended to grow over the long term.
Account holders will gain control of the funds when they reach the age of 18, allowing them either to withdraw the money or continue investing. Any investment gains will be taxed upon withdrawal.
Speaking from the Oval Office before ringing the opening bell alongside stock exchange leaders, Trump said the program is designed to give children a stronger financial foundation regardless of their family’s economic background.
“The plan provides children born without wealth with substantial financial assets.”
Backed by major corporations
Several of America’s largest companies have also committed financial support to the initiative.
Visa, Dell and Comcast are among the firms planning to contribute through employer matching programs or additional seed funding, while semiconductor manufacturer Micron has pledged $250 million toward expanding the program.
Supporters argue the accounts could encourage financial literacy and long-term investing from an early age while giving young Americans direct exposure to the country’s largest publicly traded companies.
Critics question who benefits most
Not everyone is convinced the program will have the intended impact.
Critics argue that families already struggling with rising living costs may lack the disposable income needed to make additional contributions, potentially limiting the long-term value of the accounts compared with wealthier households.
The program also joins a growing list of tax-advantaged savings options already available for education and retirement planning.
Republican Senator Ted Cruz, who participated in the launch event, praised the initiative as a way to broaden stock ownership across future generations.
“Trump Accounts are about making every child and every American a capitalist. Every one of our kids is now going to be an owner of the biggest producers in our country.”
