California Governor Gavin Newsom has publicly praised President Donald Trump's "Trump Accounts" initiative, a policy that provides children with government-backed savings accounts, calling it "one of the best things" the former president has done. Newsom's rare commendation of his political rival came during a press conference Friday in San Francisco.
"This was one of the really outstanding things this administration has done," Newsom stated. "They deserve a lot of credit and I hope people get the benefit of this program and don’t look at the politics of it." He further expressed enthusiasm for encouraging people to utilize the accounts, urging Californians to do so regardless of their political affiliation with Trump.
Newsom was joined at the press conference by his wife, Jennifer Siebel Newsom, San Francisco Treasurer Jose Cisneros, and venture capitalist Brad Gerstner, a proponent of the tax-advantaged investment accounts through the nonprofit Invest America. Gerstner highlighted that the program is not a partisan issue, emphasizing the "American Dream" and the "right to rise" as universal philosophies.
Details of the Trump Accounts
The Trump Accounts, authorized by Trump through legislation referred to as "One Big Beautiful Bill," provide children born between January 1, 2025, and December 31, 2028, with an initial $1,000. Parents, guardians, family members, and employers can contribute up to $5,000 annually to these accounts, with the potential for significant long-term growth through compounding.
According to an Urban Institute survey, the concept of government-backed "baby bonds" has garnered broad support, with 76% of American adults backing the idea. The program is accessible to any U.S. citizen with a child 18 years or younger, though the initial $1,000 benefit is restricted to children born within the specified four-year window. Invest America and its partners are reportedly seeking philanthropic donations to expand the initial funding to more children.
Philanthropists Michael and Susan Dell have committed $6.25 billion to establish Trump Accounts for 25 million American children residing in zip codes with median incomes below $150,000. Gerstner estimates that consistent weekly contributions, such as $10, could grow the funds to as much as $1 million by the time a child reaches age 55. The U.S. Treasury has developed a mobile application to facilitate these contributions.
Starting in October, the accounts will be automatically created for eligible children, a move intended to simplify the process for families.
California's Similar Initiative
California has its own program, CalKIDS, launched four years ago, which offers up to $1,500 for low-income children to support educational or training expenses. Newsom's office reported that one million families have claimed CalKIDS accounts, while urging others to check program eligibility. Micron Technology has pledged $250 million to support Trump and CalKIDS accounts for children in Sacramento and Santa Clara counties. An anonymous donor in San Francisco contributed $3.5 million towards $500 deposits for children born in the city.
Newsom also humorously remarked that he wished he had named California's program "Newsom Accounts," suggesting it might have generated more public attention. He credited Trump's ability to brand himself as a factor in his political success.