President Donald Trump marked the launch of a new federal program, "Trump Accounts," by hosting Wall Street representatives at the White House on Monday. The initiative provides eligible newborns with a $1,000 investment account, intended to foster financial security and opportunity.
Representatives from the New York Stock Exchange (NYSE) and NASDAQ were present in the Oval Office for the ceremonial ringing of the opening bell, an event that took place at the White House for the first time. The "Trump Accounts" officially began receiving deposits on July 4. Treasury Secretary Scott Bessent reported that six million such accounts have already been opened, with 86 percent belonging to families earning less than $200,000 annually. Approximately 1.4 million of these accounts will receive the initial $1,000 deposit from the U.S. Treasury.
The program, which Trump stated is meant to "help jumpstart the American Dream," allows funds to be invested in exchange-traded funds (ETFs) that track the U.S. stock market. Children with accounts cannot access the funds until they turn 18, and upon reaching that age, there are restrictions on how the money can be used, such as for purchasing a home or paying for education. Parents, family, and friends can also contribute to these accounts.
The White House estimates that accounts will grow to around $5,800 by age 18 and $18,100 by age 28, even without additional contributions. The program has also garnered philanthropic support, with notable contributions from figures like Michael Dell, founder of Dell Technologies, and Brad Gerstner, head of Altimeter Capital, who is credited as the architect of the policy. Dell announced his and his wife Susan's commitment of $6.25 billion towards 25 million eligible Americans.
During the event, Trump expressed optimism about the stock market's performance, suggesting it would yield significant returns for the young investors. "I think the market's going to go through the roof," he said. The launch occurs amid ongoing concerns about the economy and affordability, issues that are significant for voters. Inflation had previously risen to a three-year high in May, according to the Federal Reserve.
Texas Republican Senator Ted Cruz was also present, speaking to some of the children attending the event and highlighting their new status as investors in American companies. "When you go to McDonald's, you can look around and say, 'I own this place,'" Cruz remarked.
