Trump's Baby Investment Accounts: A Financial Revolution?

President Donald Trump introduces government-backed investment accounts for newborns, urging businesses to contribute. Named after Trump, the accounts offer seed money and potential growth, with significant long-term benefits. Highlighted as a crucial policy before midterm elections, the initiative aims to address affordability concerns and bolster family savings.

On Wednesday, President Donald Trump unveiled a new initiative involving government-supported investment accounts for newborns in the United States. Encouraging American businesses to contribute, Trump aims to address voter concerns over affordability ahead of the critical midterm elections.

Launched under the One Big Beautiful Bill Act, the Trump accounts will open with $1,000 seed money from the U.S. Treasury for children born between 2025 and 2028. The initiative anticipates benefiting around 25 million families. Investments will be in low-cost index funds, with taxes applied upon withdrawal.

Families can boost these accounts with their own contributions, potentially reaching up to $1.1 million by age 28, though analysts predict a $700,000 accumulation. Major companies like Visa and IBM have pledged support. Both Democrats and Republicans view the program as an economic advantage, crucial for the upcoming electoral battles.