President Donald Trump launched the "Trump Accounts" program, a savings and investment account for children, while ringing the opening bell for trading on the New York Stock Exchange and Nasdaq from the Oval Office at the White House. The government will provide a $1,000 starter fund for children born between 2025 and 2028, coinciding with Trump's second term, aiming to instill investment habits and build wealth for the new generation.
U.S. President Donald Trump rang the opening bell for trading on the New York Stock Exchange and Nasdaq from the Oval Office at the White House to start the trading day and officially unveil the "Trump Accounts" program, a savings and investment account for children promoted under tax reduction and budget legislation.
Trump expressed confidence that the U.S. stock market would continue to rise steadily, stating, "The market will soar significantly," and emphasized that his administration's economic policies are key drivers of capital market growth.
The Trump Accounts program allows parents or guardians to open investment accounts for any child born between 1 January 2025 and 31 December 2028, covering Trump's second term. The government will automatically deposit $1,000 into each eligible account. Children under 18 born before this period can still open accounts but will not receive government funding.
The U.S. Treasury revealed the program began officially accepting deposits on 4 July, coinciding with Independence Day, the same day the government started transferring funds to eligible recipients.
Funds in the accounts can be invested in mutual funds and ETFs linked to U.S. stock indices such as the S&P 500. Initially, the primary fund is the State Street SPDR Portfolio S&P 500 ETF (SPYM), with plans to add more options later. Management fees are capped at no more than 0.1% per year of asset value.
The Treasury also reported that over 6 million Trump Accounts have been opened, with about 1.4 million eligible for the $1,000 government contribution. However, this number represents only a portion of all eligible children nationwide.
Treasury Secretary Scott Bessent stated that currently, 38% of American families do not invest in the stock market, causing many to miss out on economic and market growth benefits. The program aims to give every child the chance to start accumulating wealth from birth.
The program has received support from private sector donors and billionaires. Michael Dell, founder of Dell Technologies, and his wife Susan Dell pledged $6.25 billion to support the initiative, while renowned investor Ray Dalio and SpaceX president Gwynne Shotwell have donated stock to increase investment funds for children's accounts.
Trump joked that if the government had launched the program earlier, children would have benefited from prior market gains, adding, "We probably should have done this sooner."
The Trump Accounts program is a key economic policy of the Trump administration, aimed at promoting long-term saving and investing, expanding public participation in U.S. capital markets, and helping to build financial security for future generations.
,sourceCNN/ AP