Trump Accounts Aim to Democratize Wealth with $1K Federal Seed Deposits for Children
The TRUMP Account initiative proposes a radical shift in wealth distribution by granting eligible U.S. children a $1,000 federal seed deposit, with annual savings potential of up to $5,000. Targeting households born between 2025 and 2028, the program mandates investment in low-fee U.S. equity index funds, locked until adulthood for specific financial milestones like education or homeownership.
With only 58% of American households holding stocks in 2022—and the top 1% controlling nearly half of such assets—the policy explicitly challenges entrenched inequality. Pretax parental contributions mirror 401(k) structures, while third-party donations from employers or nonprofits could amplify balances. Account management fees are capped at 0.10%, enforcing cost efficiency uncommon in retail investment products.
