The administration of US President Donald Trump is set to launch a new savings and investment programme, known as Trump Accounts, on July 4, offering a government-funded $1,000 investment account for eligible newborns.
The initiative, unveiled as part of events marking the 250th anniversary of the signing of the US Declaration of Independence, aims to encourage long-term savings and expand stock market participation among American families.
Under the programme, parents or legal guardians can open investment accounts for children born between January 1, 2025, and December 31, 2028, during Trump's second term. Eligible children who are US citizens and have Social Security numbers will automatically receive a $1,000 government contribution.
Parents may also open accounts for older children who have not turned 18 before the end of the calendar year, although those children will not qualify for the government-funded seed money.
The funds will be managed by private financial institutions and invested in low-cost US equity index funds. The money cannot be accessed until the account holder turns 18 and may only be used for approved purposes, including higher education, purchasing a home or starting a business.
Families will be allowed to contribute up to $2,500 annually in pre-tax income, while employers, relatives, friends and charitable organisations can also make contributions. Annual contributions are capped at $5,000, excluding donations from governments and philanthropic groups.
The programme has already attracted significant private support. Dell Technologies founder Michael Dell and his wife, Susan Dell, have pledged $6.25 billion to provide seed funding for children who do not qualify for the government's $1,000 contribution. Trump also announced that Micron Technology CEO Sanjay Mehrotra will contribute $250 million to the initiative.
Additional commitments have come from investor Brad Gerstner and hedge fund billionaire Ray Dalio, while companies including Uber, Intel, IBM, Nvidia and Steak 'n Shake plan to incorporate Trump Account contributions into employee benefit programmes.
Supporters say the initiative is designed to promote financial independence, broaden stock ownership and give children a stronger financial foundation from birth.
Critics, however, argue that the programme offers little immediate assistance to families facing rising living costs and does not offset reductions in federal programmes such as Medicaid and the Supplemental Nutrition Assistance Program (SNAP). They also contend that wealthier families are likely to benefit more because they are better positioned to make regular contributions to the accounts.
Administration officials say parents can begin opening accounts through the programme's official website from July 4.