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  Title	Your baby could qualify for a $1,000 'Trump account. Here's how
  ID	28868619
  External ID	ab8ae9b5775e11a8c26d79f6e51c652a
  Author	MORIAH BALINGIT
  Published Date	Dec. 3, 2025, 7:13 a.m.
  Summary	That's the idea behind "Trump Accounts," a lesser-known provision of President Donald Trump's tax legislation.
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  URL	https://news4sanantonio.com/news/local/your-baby-could-qualify-for-a-1000-trump-account-heres-how-trust-fund-children-money-investment-financial-boost-tax-legislation-newborn-stock-market
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  Content ID	36494939
  Key	3ba8180d-1b51-4615-8500-e0c17cda058c
  Content	WASHINGTON (AP) — When the children of wealthy households leave the nest, they often benefit from their parents' largesse in the form of a trust fund. Less affluent peers may receive nothing at all — or even be expected to support their families when they become adults. But what if all children, regardless of their family's circumstances, could get a financial boost when they turn 18? That's the idea behind "Trump Accounts," a lesser-known provision of President Donald Trump's tax legislation. The bill, signed into law earlier this year, gives $1,000 to every newborn, so long as their parents open an account. That money is invested in the stock market by private firms, and the child can access the funds when they turn 18. The parents of older children can also open accounts, but they won't get the $1,000 bonus. Backers say it's a way to bolster capitalism and help children from low-income households build wealth at a time when openly socialist candidates are growing more popular. The new program gives the $1,000 bonus only to babies born during the calendar years of the Trump administration. Thanks to a historic donation announced Tuesday by billionaires Michael and Susan Dell, some children 10 and under could receive $250 in seed money if their parents open an account. That money is reserved for kids who live in ZIP codes with a median family income of $150,000 or less and who won't get the $1,000 seed money from the Treasury. Here's what you need to know about Trump Accounts and how to claim them. What is a Trump Account? It's new savings tool where money is invested in the stock market on behalf of a child. The child can't access the money until they turn 18 and can only use it for specific purposes, such as paying tuition, starting a business or making a down payment on a home. After a parent opens an account, the U.S. Treasury will contribute $1,000 for newborns. Private banks and brokerages will manage the money, which must be invested in U.S. equity index funds that track the stock market and charge the accounts no more than 0.10% in annual fees. Parents can contribute up to $2,500 annually in pretax income, much like they do for 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. Who gets $1,000? To qualify for the $1,000 seed money, a baby must be a U.S. citizen, have a Social Security number and be born between Jan. 1, 2025, and Dec. 31, 2028. Any parent can open an account for a qualifying child, regardless of the parent's immigration status. It's important to note that the child won't be able to access the money until they turn 18, except in rare circumstances, so it can't help with immediate expenses. And disbursements from the accounts will be subject to taxes. What about older children? Children born before 2025 won't qualify for the $1,000 incentive, but parents can still open accounts for them as long as they're under 18. Parents can still invest up to $2,500 pretax for those kids, and they may benefit from the Dells' donation, giving $250 to children 10 and under in certain ZIP codes. How do I open a Trump Account for my kids? The accounts won't be open for contributions until July 2026. But parents of eligible kids can sign up now by filling out Form 4547 from the Internal Revenue Service. As of Tuesday afternoon, that form was not yet available on the Trump Accounts website. In May, parents who sign up will get information about how to finish opening the accounts. Beginning in July, the White House says it will have a website where parents can register for the accounts. What's the idea behind the accounts? Backers of the accounts say they want to introduce more people to the stock market and give even children born into poverty a chance to benefit from it. They believe that giving every newborn $1,000 will help combat the rising popularity of socialism and offer more people the opportunity to build wealth. About 58% of U.S. households held stocks or bonds in 2022, according to the U.S. Securities and Exchange Commission, though the wealthiest 1% owned almost half the value of stocks in that same year. Before Trump created the accounts, California, Connecticut and the District of Columbia were piloting "baby bonds" programs that are similar to Trump Accounts in some ways. Several other states, including Maryland, are weighing programs. But those programs are targeted for youth growing up in poverty or foster care, plus children who lost a parent to COVID-19. Wealthier children don't benefit. They're also managed by the state, not private investment firms. What do critics say? Critics point out the accounts do little to help children in their early years, when they're most vulnerable and most likely to be in poverty. They also say the accounts do little to offset the cuts the Trump administration and congressional Republicans have made to other programs that benefit young people and their families, including food assistance and Medicaid. Republicans created the accounts in the same Trump tax bill that reduced spending for some of those programs. And even with the contribution from the government, critics say the Trump Accounts will widen the wealth gap. Affluent families that can afford to make the maximum pretax contribution to the accounts will realize the greatest benefits. Poor families who can't afford to set aside money for the accounts will benefit the least. Assuming a 7% return, the $1,000 in seed money would grow to roughly $3,570 over 18 years. Michael and Susan Dell donate $6.25 billion to encourage families to claim 'Trump Accounts' By THALIA BEATY Associated Press NEW YORK (AP) — Billionaires Michael and Susan Dell pledged $6.25 billion Tuesday to provide 25 million American children 10 and under an incentive to claim the new investment accounts for children created as part of President Donald Trump's tax and spending legislation. The historic gift has little precedent, with few single charitable commitments in the past 25 years exceeding $1 billion. Announced on GivingTuesday, the Dells believe it's the largest single private commitment made to U.S. children. Its structure is also unusual. Essentially, it builds on the " Trump Accounts " program, where the U.S. Department of the Treasury will deposit $1,000 into investment accounts it sets up for American children born between Jan. 1, 2025 and Dec. 31, 2028. The Dells' gift will use the "Trump Accounts" infrastructure to give $250 to each qualified child under 11. "We believe that if every child can see a future worth saving for, this program will build something far greater than an account. It will build hope and opportunity and prosperity for generations to come," said Michael Dell, the founder and CEO of Dell Technologies whose estimated net worth is $148 billion, according to Forbes. Though the "Trump Accounts" became law as part of the president's signature legislation in July, the Dells say the accounts will not launch until July 4, 2026. Michael Dell said they wanted to mark the 250th anniversary of U.S. independence. "We want these kids to know that not only do their families care, but their communities care, their government, their country cares about them," Susan Dell told The Associated Press. Under the new law, "Trump Accounts" are available to any American child under 18 with a Social Security number. Account contributions must be invested in an index fund that tracks the overall stock market. When the children turn 18, they can withdraw the funds to put toward their education, to buy a home or to start a business. The Dells will put money into the accounts of children 10 and younger who live in ZIP codes with a median family income of $150,000 or less and who won't get the $1,000 seed money from the Treasury. Because federal law allows outside donors to target gifts by geography, the Dells said using ZIP codes was "was the clearest way to ensure the contribution reaches the greatest number of children who would benefit most." The Dells hope their gift will encourage families to claim the accounts and deposit more money into it, even small amounts, so it will grow over time along with the stock market. There is a political benefit for Trump and fellow Republicans. The accounts will become available in the midst of a midterm election, providing money to millions of voters — and a campaign talking point to GOP candidates — at a critical time politically. The $1,000 deposits are slated to end just after the 2028 presidential election. At the White House on Tuesday, Trump praised the Dells saying their gift was, "truly one of the most generous acts in the history of our country." Trump said many companies and many of his friends would also be donating, adding "I'll be doing it, too." Brad Gerstner, a venture capitalist, who championed this legislation, said the accounts will give all children renewed hope in the American dream. "It's hard to give effective dollars away at scale, particularly to the country's neediest kids in a way that you have confidence that those dollars are going to compound with the upside of the U.S. economy," said Gerstner, who is also the founder of Invest America Charitable Foundation, which is supporting the Treasury in launching the accounts. "Fundamentally, we need to include everybody in the upside of the American experiment. Otherwise, it won't last. And so, at its core, we think it can re-energize people's belief in free market, capitalist democracy,"" Gerstner said of the accounts. About 58% of U.S. households held stocks or bonds in 2022, according to the U.S. Securities and Exchange Commission, though the wealthiest 1% owned almost half the value of stocks in that same year and the bottom 50% owned about 1% of stocks. In 2024, about 13% of children and young people in the U.S. lived in poverty, according to the Annie E. Casey Foundation, and experts link the high child poverty rates to the lack of social supports for new parents, like paid parental leave. While the funds in the Trump Accounts may help young adults whose families or employers can contribute to them over time, they won't immediately help to diminish childhood poverty. Cuts to Medicaid, food stamps and child care that were also included in the spending package are likely to reduce the support children from low-income families receive. Ray Boshara, senior policy adviser with both the Aspen Institute and Washington University in St. Louis, said he is excited about the idea that the Trump Accounts will be able to receive contributions from the business, philanthropic and governmental sectors. "We would like to see this idea continue and get better over time, just like any big policy,' said Boshara, who co-edited the book "The Future of Building Wealth." "The ACA, Social Security – they start off fairly flawed, but get much better and more progressive and inclusive over time. And that's how we think about Trump Accounts. It's a down payment on a big idea that deserves to be improved and there's bipartisan interest in improving them." Through the Michael & Susan Dell Foundation, the Dell's have reported giving $2.9 billion since 1999, with a large focus on education. Michael Dell said they had not initially envisioned committing so much to boost the child investment accounts, but Susan Dell said that changed over time. "We're thrilled to be spearheading this in the philanthropy sector and are so excited because we know that more people are going to jump on board because really, we can't think of a better idea and better way to help America's children," she said.
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