TEXAS — When America celebrated 250 years on Saturday, some parents also celebrated a financial boost for their one-year-old, infant or newborn.
On the Fourth of July, the U.S. Department of the Treasury announced the official launch of the Trump Accounts and the Trump Accounts app. A U.S.-born child under 18 years old with a Social Security number qualifies for the account.
Babies born Jan. 1 of last year to Dec. 31, 2028, get a onetime $1,000 deposit if parents enroll in the Trump Accounts.
President Donald Trump, Sen. Ted Cruz, R-Texas, and Texas billionaires Michael and Susan Dell made the announcement about the now-live accounts, which were created last Fourth of July.
“Those accounts will now begin to grow right along with our booming economy,” Trump said. “And I really believe we’re going to have the biggest boom of all right now. You haven’t seen anything yet. Between individual contributions and the seed funds, $800 million in new capital will be invested in the stock market for America’s children this week.”
A huge part of that investment comes from the Dells, who live in Austin. Last December, the Texas couple made a multi-billion-dollar pledge to the initiative.
“So, we’re contributing $6.25 billion — $250 to 25 million eligible American children born between the ages of 2016 and 2024,” said Michael Dell.
“A child that has a financial account in their own name is a child who has so many more opportunities and hope,” said Susan Dell. “As a mother, I know that every child deserves that. So, parents, claim your child’s Trump Account today. Years from now, your child will thank you for it.”
Another Texan who played a role in creating the accounts is Cruz.
“And you know what, with that $250, you’ve purchased a little bit of a bunch of big companies,” Cruz said to children in attendance. “You know McDonald’s? You now own a little bit of McDonald’s.”
Spectrum News asked Steve Cotton, president of Cotton Wealth Management in Dallas, about the validity of that McDonald’s claim.
“Yes, that just means that when you invest money in an index of a diverse group of companies, you’re going to be investing in the free enterprise system and company stocks,” Cotton said. “That’s what he meant by that.”
Cotton said there’s no downside to the accounts.
“The potential for this money to grow is absolutely huge, provided that it’s invested in the index funds within these Trump accounts and it’s not touched for 18 years. Over time, the time value of money grows,” said Cotton.
As of Saturday, the U.S. Secretary of the Treasury said 6 million Americans have already signed up for the accounts, with 86% from families that make less than $200,000 a year.