White House unveils new investment accounts for children

President Donald Trump appeared alongside Speaker of the House Mike Johnson and Dell CEO Michael Dell on Monday to discuss the so-called Trump Accounts initiative included in the One Big, Beautiful Bill Act. Trump described the initiative as pro-family, giving important financial benefits once the children become adults, while also teaching about the importance of early investing.

Every U.S. citizen born after Dec. 31, 2024 and before Jan. 1, 2029, will receive a tax-deferred investment account with a one-time $1,000 deposit from the federal government, Trump explained. The accounts will track with the overall stock market and be privately controlled by the child’s parents or guardians, he continued. Additional contributions can be made to the accounts every year from parents, friends, family members, employers, churches, and private foundations, the president added. Children can use the money later in life to pay for education, buy a home, or open a business. This program would help millions of American families harness the strength of economic investment in order to lift up the next generation, Trump said.

This transformative policy would give every eligible American child a financial head-start from day one, Johnson said. These accounts could make a game-changing difference in people’s lives, paving the way to pay for college, buy a home, or start a business, he said. The accounts would also help people better understand investing, capitalism, and the free market from a young age, he added.

Who’s paying for this? The initiative will only go into effect if the One Big, Beautiful Bill Act passes because it’s funded by targeted reforms from the statute. Those reforms include $1.7 trillion in mandatory savings through the elimination of welfare fraud and other waste, as well as the implementation of a 3.5% remittance tax, Trump said. Dell added that he planned to match the government’s funding in a program for his employees’ kids.

Why was tech giant Michael Dell there? Trump credited Dell with bringing the idea of investment accounts to his attention. Dell and his friends have discussed the idea for years, but it never got done under other administrations, Trump said. Goldman Sachs CEO David Solomon and Uber CEO Dara Khosrowshahi also appeared and participated in the roundtable, supporting the proposed initiative.

Dig deeper: Read Elizabeth Russell’s update on Senate consideration for the One Big Beautiful Bill Act.