Trump Accounts: Unlocking Wealth for Every American Child

Every child born in America deserves a chance to thrive. Trump Accounts, a key provision of President Donald J. Trump's One Big Beautiful Bill, signed in 2025, make that possible. These tax-deferred investment accounts start with a $1,000 government contribution for every newborn, designed to grow through the power of compound interest. This policy hands families a real tool to build wealth, offering a direct path to financial security for the next generation.

The accounts allow up to $5,000 in annual private contributions, tracking a broad stock index to ensure steady growth. By the time a child reaches 18, they could have enough saved for college, a business, or a down payment on a home. House Ways and Means Committee Chair Jason Smith calls it transformative. Whether a family lives in a bustling city or a quiet rural town, their child gets a head start. Why wouldn't we want that for every American?

Wealth provides the freedom to chase dreams, take risks, or build something lasting. Trump Accounts tie every child to the strength of free markets, encouraging responsibility and ownership from the start. Altimeter Capital CEO Brad Gerstner said this policy makes America an ownership society, giving kids a sense they are part of the economic game early on.

Can a $1,000 seed really change lives? Research proves it can. The SEED for Oklahoma Kids experiment, started in 2007, gave newborns $1,000 in savings accounts. By age 14, those accounts averaged $4,373, and children showed stronger social-emotional growth. Low-income parents felt more hopeful about their kids' futures. Programs in states like Colorado and Georgia, covering 382,000 children, project balances of $7,600 to $16,500 by age 18 with small annual contributions. These results are not guesses; they are real.

History reinforces this. The UK's Child Trust Fund, running from 2003 to 2010, encouraged families to save by providing a starting point. Michigan's SEED program in the 2000s improved educational planning for kids with accounts. Early investment shapes how families think about the future, pushing them toward goals like college or homeownership. Dell CEO Michael Dell noted that financial head starts increase college graduation and entrepreneurship. Why doubt what works?

Some argue the $1,000 seed won't bridge wealth gaps. They are looking at it incorrectly. Trump Accounts provide a foundation for families to build on, offering a tool for progress, not a fix for every problem. Critics who favor larger government payouts overlook evidence that structured savings programs spark lasting change, a different outcome than one-time cash injections. The data is clear; early investment sets kids up for success.

Certain policymakers push for bigger welfare programs or child tax credits, claiming investment accounts benefit only the wealthy. That is a weak argument. Trump Accounts are universal; every newborn gets the $1,000 seed, no exceptions. Wealthier families might contribute more, but low-income families gain access to markets they'd otherwise miss. Goldman Sachs CEO David Solomon sees this as connecting future generations to America's top companies. Markets have always driven real wealth creation, not government mandates.

The accounts are built for success: automatic enrollment, tax-deferred growth, and withdrawals taxed at capital gains rates for uses like education or starting a business. This structure trusts families to make wise choices, a different approach from entitlement programs that often foster reliance. Uber CEO Dara Khosrowshahi called these accounts a launchpad for kids. Why choose temporary aid when a lasting stake in prosperity is an option?

Wealth inequality is a challenge, yet tearing down markets is not the answer. Harvard research shows that children born in the 1980s have only a 50 percent chance of out-earning their parents, compared to 90 percent for those born in 1940. Trump Accounts address this by giving every child a piece of the economic system. Financial literacy, long supported by market advocates, will strengthen this approach. OECD studies confirm that teaching budgeting and investing increases savings and reduces debt. Combine that with a real account, and you empower families to break cycles of poverty.

Trump Accounts offer a vision of a nation where every child starts with opportunity. Backed by leaders like Speaker Mike Johnson, this policy reflects the belief that individuals, not government, drive progress. Major CEOs, from Dell to Robinhood, support it because they see its potential: a generation ready to innovate and thrive in a free market.

The cost, about $70.5 million annually for 120,000 births in pilot states, is modest compared to less effective programs. The impact, though, could reshape how Americans view saving and investing. Opponents will argue for more government control; their plans, however, lack the bold ambition of Trump Accounts. Why offer kids handouts when ownership of their future is possible?

This policy is a commitment to America's people. Trump Accounts tie every child's future to the power of markets, fostering a stronger, freer, and more prosperous nation. It is a chance to invest in our kids and our country. Let us take it.