Cheryl Casone discusses the introduction of Trump accounts, a new initiative that gives qualifying children a $1,000 government deposit and up to $5,000 in annual contributions.
President Donald Trump on Monday celebrated the launch of the Trump Accounts by ringing the opening bells for the New York Stock Exchange and Nasdaq from the White House.
Trump’s accounts were created by the One Big Beautiful Bill Act, a package of tax cuts and reforms that Republicans passed in Congress and signed into law by Trump last year.
“This is about the Trump Accounts, which is unbelievable for kids. Kids who are 18 years old, and after that, they become very rich people – they come into the world with no money and end up very young and very rich,” Trump said.
“That’s something we wanted to do, the country we wanted to do for 25 years,” added the president.
President Donald Trump has been promoting the Trump Accounts program since the passing of the One Big Beautiful Bill Act. (Wina McNamee/Getty Images)
The program invests savings in low-cost index funds that provide broad, diversified exposure to the US stock market.
GOLDMAN SACHS TO DONATE $1,000 TO TRUMP ACCOUNTS FOR ELIGIBLE CHILDREN OF WORKERS
Parents and guardians may contribute up to $5,000 a year to their children’s accounts, while a parent’s employer can contribute up to $2,500 a year without affecting the employee’s taxable income.
The accounts will be credited with $1,000 in federal funds to give children born between 2025 and 2028 a jump start on their savings.
The Trump Accounts app was launched over the weekend as the program officially opened to the public. (US Treasury Department)
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“On Saturday, July 4, our administration made one-time seed donations, $1,000 each, to Trump Accounts for more than 500,000 American children. There are more, and millions more will be receiving additional donations from generous donors,” Trump said, noting the $6.25 billion donation made by Michael and Susan Dell, who donated to the account for children under 10 and 2.
“Children who are born without money, without money – great parents, everything would be good, but they don’t have money – they can be very rich children when they are 18. They can browse, or their people can turn it to other cars in some years so they don’t take it out, I would recommend that maybe they don’t take it out,” the president added, citing the growth of the stock market.
“Today with the ringing of the bell to open the stock market, those accounts will now begin to grow along with our growing economy. And I truly believe that we will have the biggest boom yet. You have not seen anything yet. Between individual donations and seed funds, $800 million of new capital will be invested in the stock market for American children this week.
| A ticker | Security | Finally | Change | Change % |
|---|---|---|---|---|
| SPYM | STATE STREET® SPDR® PORTFOLIO S&P 500® ETF – USD DIS | 87.67 | -0.10 |
-0.11% |
When the Trump Accounts were officially launched, there was only one investment option available, although the Treasury Department indicated that four would be available in the coming months.
State Street SPDR Portfolio S&P 500 ETF (SPYM), a low-cost exchange-traded fund (ETF) that tracks the performance of the S&P 500 Index, will be the first default investment option.
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The other four ETFs in the future include two focused on the overall US stock market offered by Vanguard and iShares, and a State Street ETF focused on the broader S&P 1500, and another offered by iShares focused on the S&P 500.
