The White House touted the launch of Trump Accounts Monday, announcing that millions of families had signed up to hold the specialized deposit accounts since they became available on July 4.
Under the program, parents can open special investment accounts for any child born during Trump’s second term and automatically receive $1,000 from the government. Accounts can be opened for older children — as long as they don’t turn 18 before the end of the calendar year — but they will not receive the $1,000. The accounts were set to open for deposits July 4, which was also the day the Treasury Department plans to transfer the $1,000 bonus.
Treasury Secretary Scott Bessent said that 86% of the 6 million signed up came from families earning less than $200,000.
Speaking to Scripps News on Monday, Bessent said the program could be the first time a large segment of U.S. households have investments in the market.
"The success is going to be A, can we move that 38% of households down toward zero, so that all households have a stake. B is going to be the financial literacy and the engagement, because everyone's going to be able to look at it on their phone," Bessent said.
"It's like [Sen. Ted Cruz] said today. For children, they'll be able to see when they walk into McDonald's, they own a piece of McDonald's. When they go into Walmart, they own a piece of Walmart."
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Other investors have promised seed money that will go into qualifying accounts.
Dell Technologies founder Michael Dell and his wife, Susan, pledged to give $6.25 billion targeted so children 10 or under can get $250 in seed money if they live in ZIP codes with a median family income of $150,000 or less.
President Trump announced that Sanjay Mehrotra, CEO of Micron Technology, would give $250 million. Hedge fund founder Ray Dalio and his wife, Barbara, pledged $75 million so kids under 10 in qualifying ZIP codes in Connecticut can get $250. And Trump said investor Brad Gerstner would donate $250 to Trump Accounts for every child under 5 in Indiana.
Administration may propose a similar program for adults
Bessent also said advisers planned to pitch President Trump on creating a similar program to be made available to American adults.
"That would be a very different plan," Bessent told Scripps News. "That would copy the Australian model, what's called Superannuation. Those are more individual and corporate workplace contributions into an account."
"My guess is we will be briefing him on or before Labor Day and then we'll start pushing the Hill on that. It will need congressional approval," he said.
What are critics saying about the child investment accounts?
Critics point out that the accounts do little to help children in their early years, when they’re most vulnerable and most likely to be in poverty. The accounts, they say, also fail to offset the cuts the Trump administration and congressional Republicans have made to other programs that benefit young people and the adults in their lives, including food assistance and Medicaid.
And even with government contributions, critics say the Trump Accounts will widen the wealth gap. Affluent families that can afford to make the maximum pretax contributions will realize the greatest benefits. Poor families that can’t afford to set aside money for the accounts will benefit the least. Assuming a 7% annual return, the $1,000 in seed money would grow to roughly $3,570 over 18 years.
