Pennsylvania\u2019s U.S. senators paid a visit to the Philadelphia Youth Basketball program Monday to pitch the federal child savings accounts set to open on the Fourth of July.\u00a0<\/p>\n
Coined \u201cTrump accounts,\u201d the children\u2019s investment accounts \u2013 which provide a federal seed investment of $1,000 to American children born on or after January 1, 2025 \u2013 were part of the One Big Beautiful Bill Act signed into law on July 4, 2025.\u00a0<\/p>\n
Exactly one year later, the window opens for a parent or guardian to open up a Treasury-backed savings account for their child \u2013 with the expectation that investment returns will compound without being taxed.\u00a0<\/p>\n
\u201cThe (accounts) are a way to make sure everybody takes advantage in the growing economy, and so it\u2019s a great step forward for our country,\u201d Sen. Dave McCormick said at the press conference Monday. \u201cIt\u2019s not a partisan issue. In other words, there\u2019s no politics \u2013 the idea is to create opportunity for every single person.\u201d<\/p>\n
With the help of Michael and Susan Dell, who donated more than $6 billion to kickstart the financial accounts, children born between Jan. 1, 2025 and Dec. 31, 2028 will receive $1,000 in seed money contributed by the federal government. And, as officials announced Monday, children outside the federal eligibility window may also claim a $250 investment contribution through the Michael and Susan Dell Foundation, available to children 10 and under living in households with a median family income of $150,000 or less.\u00a0<\/p>\n
There are an estimated 1.4 million children in Pennsylvania who are eligible for $250 or more in federal seed investment and support from the Michael & Susan Dell Foundation.<\/p>\n
Sen. John Fetterman, whose hoodie and gym shorts fit right in at the Alan Horwitz \u201cSixth Man\u201d Center and the Philly Youth Basketball program, made the team-building argument when talking about working in Congress.\u00a0<\/p>\n
\u201c(McCormick) and I are on different teams. He\u2019s a Republican, I\u2019m a Democrat, but we\u2019re here today because we want all of you one day to be millionaires and we want you to have your financial security in life,\u201d Fetterman said Monday. \u201cLet\u2019s be frank: Sometimes politics get involved \u2026 These are very simple, and this has nothing to do about politics or the name \u2026 It\u2019s about your futures.\u201d\u00a0<\/p>\n
Flanked by Brad Gerstner, founder of Invest America, and more than 100 children, McCormick and Fetterman emphasized they\u2019re \u201cfighting for Pennsylvania\u201d regardless of what side of the aisle they sit on.\u00a0<\/p>\n
McCormick told reporters a fundamental problem in the country is the \u201cgrowing concentration of wealth,\u201d a remark that Fetterman said made McCormick sound like a Democrat.\u00a0<\/p>\n
\u201cIt\u2019s been the best 15 years in modern history, maybe in the history of humanity, for people that had assets,\u201d McCormick claimed. \u201cIf you had assets, you just got a lot richer, but if you\u2019re living paycheck to paycheck, then you were worse off, because inflation was up and wages didn\u2019t keep (up), particularly during the Biden administration.\u201d<\/p>\n
Gerstner explained that BNY, in collaboration with Robinhood, will manage the children\u2019s investment accounts. Similar to traditional IRAs or retirement accounts, the funds will be invested in stock indexes like the S&P 500, and children won\u2019t be able to withdraw from the accounts until they turn 18. Each account will convert to a standard traditional IRA in the year the beneficiary turns 18.\u00a0<\/p>\n
\u201cUnder the current legislation, (at age 18) they can take up to 25% out to go to college, buy a home (or) start a business, and the rest rolls automatically into an IRA,\u201d Gerstner told reporters. \u201cYou can take out (of the IRA) for emergencies and other things, but for the most part, the expectation is that a portion of this will compound and a portion can be spent at 18 in order to improve their lives.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"Pennsylvania\u2019s U.S. senators paid a visit to the Philadelphia Youth Basketball program Monday to pitch the federal child…\n","protected":false},"author":2,"featured_media":231206,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[7097,1160,2156,28,30,29,69],"class_list":["post-231205","post","type-post","status-publish","format-standard","has-post-thumbnail","category-pennsylvania","tag-congress","tag-economic-development","tag-news-politics","tag-pennsylvania","tag-pennsylvania-headlines","tag-pennsylvania-news","tag-philadelphia"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us-pa\/wp-json\/wp\/v2\/posts\/231205","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us-pa\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us-pa\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-pa\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-pa\/wp-json\/wp\/v2\/comments?post=231205"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us-pa\/wp-json\/wp\/v2\/posts\/231205\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-pa\/wp-json\/wp\/v2\/media\/231206"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us-pa\/wp-json\/wp\/v2\/media?parent=231205"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-pa\/wp-json\/wp\/v2\/categories?post=231205"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-pa\/wp-json\/wp\/v2\/tags?post=231205"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}