President Donald Trump outlines savings accounts for newborns and praises Michael and Susan Dell for supporting the launch of the new ‘Trump Accounts’ initiative.
Sens. Ted CruzRep. Cory Booker, D-N.J., R-Texas, urged leaders of Fortune 1000 companies in a letter Tuesday to support the newly created federal savings program known as “Trump Accounts,” a tax-advantaged investment account for newborn American children.
The program, created by the One Big Beautiful Bill Act and signed into law by the President Donald Trump On July 4, every child born between January 1, 2025 and December 31, 2028 will receive a one-time government payment of $1,000 at birth. Families can open an account once the child has a Social Security number, and the money cannot be withdrawn until the child turns 18.
“These reports will launch a once-in-a-lifetime expansion of economic opportunity and prosperity for every American child, empowering millions of families to achieve the American dream through homeownership, education or entrepreneurship,” the senators wrote.
WHITE HOUSE UNVEILS ‘TRUMP ACCOUNTS’ FOR CHILDREN WITH $6.25B DELL INVESTMENTS
Sens. Ted Cruz, R-Texas, and Cory Booker, D-N.J., led a bipartisan effort to urge the CEOs of Fortune 1000 companies to support “Trump Accounts.” (Tom Williams/CQ-Roll Call/Andrew Harnik/Getty Images)
Senators also emphasized the long-term financial benefits.
“These tax-advantaged accounts ensure that every American child is a direct shareholder in America’s largest companies and will experience the miracle of compound growth throughout their lives,” they wrote.
“We believe these accounts – like 401(k)s – represent a transformative tool for building long-term financial security, increasing economic prosperity, and fundamentally restoring confidence in American capitalism.”
The letter also calls on companies to join the efforts.
The “Trump Account” is a tax-advantaged account included in the One Big Beautiful Bill Act. (Tim Clayton/Corbis/Getty Images)
“Many companies have already pledged support, and we encourage your company to explore how you can contribute at a level that matches your mission and capacity. By matching contributions for employees’ families, investing in the communities you serve, or integrating these accounts into your philanthropic strategy, you can significantly increase the impact of this historic initiative.”
The call from both parties follows a $6.25 billion investment from Michael Dell, founder and CEO of Dell Technologies, and his wife Susan.
MICHAEL AND SUSAN DELL DONATE $6.25BILLION TO FUND ‘TRUMP ACCOUNTS’
Michael and Susan Dell announced the $6.25 billion investment in X and later joined President Donald Trump at the White House. (Andrew Caballero-Reynolds/AFP/Getty Images)
The two joined Trump at the White House to share additional details about their pledge, the program’s first major infusion of private funding.
“These investment accounts are simple, secure and structured to grow in value through market returns over time. At age 18, these young Americans can have a financial foundation for further education, job training, homeownership or future savings. It’s a simple but very powerful idea,” the couple said in a statement.
Trump called the Dell family’s investment a “great” and “generous act” and said he would also donate to the federal savings program.
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The Treasury Department estimates that Trump’s bills could accumulate to a seven-figure balance by early adulthood as families maximize their contributions.
A fully funded account can amount to up to $1.9 million at age 28This was reported by the Office of Tax Analysis of the Ministry of Finance. Even at the lower end of expected returns, the savings account could still bring in almost $600,000 over the same period.
Even without additional contributions beyond the initial $1,000 from the federal government depositTreasury estimates the bill could grow to between $3,000 and $13,800 in 18 years.
