Trump Accounts launch July 4, giving newborns $1,000. Here's what to know
Summary
President Donald Trump is launching a new program called Trump Accounts on July 4 to help children born during his second term start saving money. Parents can open investment accounts for these children, and the government will put in $1,000 to invest in the stock market, which the child can only use for certain expenses after turning 18.Key Facts
- Trump Accounts start on July 4 and celebrate America's 250th anniversary.
- Any child born during President Trump's current term (from Jan. 1, 2025) automatically gets $1,000 in their account.
- Accounts can be opened for children under 18, but only newborns receive the $1,000 government deposit.
- The money is invested in U.S. stock market index funds managed by private firms with low fees.
- Children can access the money at age 18 for specific uses like education, buying a home, or starting a business.
- Parents and others can add more money, with a yearly contribution limit of $5,000 (excluding donations from governments or charities).
- Billionaires like Michael Dell and Sanjay Mehrotra have pledged billions to support these accounts for children not eligible for the $1,000 bonus.
- The program comes amid rising living costs and cuts to some social programs like Medicaid and SNAP.
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