The White House announced updates on Wednesday regarding the "Trump Accounts," including an additional donation from hedge fund billionaire Ray Dalio and his wife Barbara, which will fund children's savings accounts.
Over the past week, several corporations, including Bank of New York Mellon and BlackRock, have pledged to match employee contributions to Trump Accounts, encouraging early wealth accumulation for children.
Trump Accounts, also known as Section 530A accounts, were established under the "Great Benefits Act" proposed by former President Donald Trump and passed by Congress in July. According to updates on the official Trump Accounts website (trumpaccounts.gov), these accounts will become available to families by mid-2026.
The IRS and Treasury Department released supplemental guidelines for Trump Accounts earlier this month.
**"50-State Challenge Initiative"** Ahead of a White House press briefing, the Trump Accounts website highlighted contributions from Dalio and Dell Technologies Inc. CEO Michael Dell and his wife Susan under the "Additional Support" section.
Treasury Secretary Bessent stated, "Ray has joined our '50-State Challenge Initiative.'"
Per the announcement, the Dalios' donation will provide $250 each to approximately 300,000 children in Connecticut residing in zip codes with median household incomes below $150,000. Census data shows 87% of the state's zip codes meet this threshold.
Earlier this month, Michael Dell and his wife pledged $6.25 billion to support the pilot program for these accounts, targeting low-income families.
A 2020 Morningstar analysis of "baby bonds"—government-funded investment accounts for newborns—found such programs help narrow racial wealth gaps. Currently, few families utilize 529 college savings plans, with a July Credit Karma survey revealing only 23% of parents have opened one, while 43% were unaware of the option.
**Opening a Trump Account** Any legal guardian (parent, adult sibling, or grandparent) can open an account for a U.S. citizen under 18 by submitting IRS Form 4547, either separately or with 2025 tax returns. Online registration via trumpaccounts.gov will launch in mid-2026.
Children born between 2025 and 2028 will receive a one-time $1,000 Treasury deposit, with no income restrictions. Those born before 2025 (under age 10) in eligible zip codes (median income ≤$150,000) will receive $250 from the Dell family. Census data indicates only 3% of U.S. zip codes exceed this income level.
The nonprofit "Invest in America" estimates 25 million children will benefit from these donations.
**Investment Options** A sample "Katie's Trump Account" on the website shows holdings like 1.1 shares of Nvidia and 0.2 shares of Tesla, but funds will actually be allocated to low-cost index funds.
Trump Accounts have stricter investment limits than other tax-advantaged accounts, permitting only U.S. broad-market index funds (ETFs or mutual funds) with fees capped at 0.1% and no leverage. Morningstar identified 186 qualifying funds.
**Growth Potential** Secretary Bessent noted that even with just the initial $1,000 deposit, compound growth could significantly build wealth. The website projects three scenarios: no additional contributions, $250/year, or $5,000/year.
Assuming a 10% annual S&P 500 return (pre-inflation), $1,000 could grow to $5,800 in 18 years. However, Carson Group’s Debra Taylor cautioned that full equity exposure carries market risk, advising conservative allocations for risk-averse investors.
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