‘Trump accounts’: Wall Street-backed investment funds for children to go live
Summary
Trump accounts are new savings accounts for children, introduced by congressional Republicans and linked to President Donald Trump’s second term. The government will put $1,000 into accounts opened for children born between 2025 and 2028, and families can add up to $5,000 a year, with funds invested in large Wall Street companies.Key Facts
- Trump accounts start on Saturday and are for children born from January 2025 to December 2028.
- The government deposits $1,000 into each new account.
- Parents, friends, and employers can contribute up to $5,000 per year to these accounts.
- The accounts are controlled by parents until children turn 18, when the children can use the money for college, buying a home, or starting a business.
- Deposits will initially be invested in a fund tracking the S&P 500 index, managed by State Street; other managers like BlackRock and Vanguard will join later.
- An app to manage the accounts is being developed by Bank of New York Mellon and Robinhood.
- Billionaires Michael and Susan Dell and Ray and Barbara Dalio have donated money to add extra funds for children in poorer areas.
- Some Republicans call the bill creating these accounts the “Working Families Tax Cuts Act,” claiming it has helped families with lower taxes.
Read the Full Article
This is a fact-based summary from The Actual News. Click below to read the complete story directly from the original source.
