Trump Accounts for kids launch July 4: How to get $1,000

President Donald Trump is launching his Trump Accounts initiative on Independence Day, offering $1,000 to families with children born during Trump’s second term. 

Here’s what to know about the new investment accounts: 

What are Trump Accounts? 

The backstory:

Trump Accounts are new accounts that invest in the stock market on a child’s behalf. The child can’t access the money until they turn 18, except in rare circumstances. The money can only be used for specific purposes, like school tuition or a down payment on a home. 

Private banks and brokerages will manage the money, which must be invested in U.S. equity index funds that track the stock market. The accounts can’t be charged more than 0.10% in annual fees.

Parents can contribute up to $2,500 annually in pretax income, similar to retirement accounts. Parents’ employers, relatives, friends, local governments and philanthropic groups can also pitch in. Yearly contributions are capped at $5,000, but contributions from governments and charities don’t count toward that total.

By the numbers:

Assuming a 7% annual return, the $1,000 in seed money would grow to roughly $3,570 over 18 years.

Who gets $1,000?

Parents can open the investment accounts for any child born during Trump's second term (Jan. 1, 2025 - Dec. 31, 2028) and receive $1,000 from the government. Accounts can be opened on behalf of older children — as long as they don't turn 18 before the end of the calendar year — but they won’t receive the $1,000.

To qualify for the seed money, the baby must be a U.S. citizen and have a Social Security number.

After a parent or guardian opens an account, the Treasury Department will automatically contribute $1,000 for newborns. 

Accounts boosted by billionaires

Dig deeper:

Billionaires have pledged billions of dollars to the Trump Accounts beyond what the government has already promised. Michael Dell, the founder of Dell Technologies, and his wife, Susan, said they’ll give $6.25 billion to the accounts of some kids who don't qualify for the government's $1,000. On Wednesday, Trump announced on Truth Social that Sanjay Mehrotra, CEO of Micron Technology, would give $250 million.

What they're saying:

Trump said the accounts and private donations will "jumpstart the American Dream for these fabulous children as we celebrate America’s 250th Anniversary!" 

"This MASSIVE Investment will help MILLIONS of American children and families get a strong start in life, and give them REAL Financial Security," Trump wrote on his Truth Social platform. 

The Dells' $6.25 billion donation will allow some children who are age 10 or under to receive $250 in seed money if their parents open an account. It’s only for kids who live in ZIP codes with a median family income of $150,000 or less who are too old to get the $1,000 from the Treasury.

Hedge fund founder Ray Dalio and his wife, Barbara, pledged $75 million for kids under age 10 in Connecticut, where Dalio lives. That would amount to $250 for 300,000 children in qualifying ZIP codes.

Investor Brad Gerstner said he’ll donate $250 to Trump Accounts for every child under age 5 in Indiana.

Several major companies also plan to add Trump Account contributions to their benefits packages, including Uber, Intel, IBM, Nvidia and Steak 'n Shake.

How to sign up for Trump Accounts

What you can do:

Families can sign up at trumpaccounts.gov.

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