The U.S. Treasury on Wednesday asked major philanthropic donors to contribute to new investment accounts for children as part of what Secretary Scott Bessent called the “50-State Challenge” to raise funds for children's needs. Trump accounts program.
“The President calls on our nation's business leaders and philanthropic organizations to help us Make America Great Again by securing the financial future of America's children,” Bessent said in his address.
Billionaire hedge fund founder Ray Dalio and his wife Barbara announced they will donate between $250,000 and $300,000 to children in Connecticut who live in zip codes where the median income is less than $150,000. Dalio founded the investment firm Bridgewater Associates and lives in Connecticut.
The Dalio Family's $75 Million Commitment Follows $6.25 billion bail from billionaires Michael and Susan Dell earlier in December. The Dells pledged to invest $250 in the bills of 25 million children under age 10 living in ZIP codes across the country who have the same average income.
The new investment accounts were created as part of President Donald Trump's program. tax and expenditure legislationpassed in the summer. Under the new law, the US Treasury Department will contribute $1,000 to the investment accounts of children born during Trump's second term.
The Treasury has not yet opened new accounts.
“Starting July 4, our nation’s 250th birthday, parents, family members, employers and friends will be able to contribute up to $5,000 annually to each Trump account,” Bessent said Wednesday.
Brad Gerstner, a venture capitalist who defended the accounts, said the Treasury would create an account for every child in the U.S. who has a Social Security number, but private companies would ultimately manage the accounts. Parents or guardians will be required to claim accounts on behalf of their children. For children born before Trump took office and not eligible to receive funds from the Dells and Dalios, their families can open and fund their own Trump account if they choose.
The money in the accounts should be invested in an index fund that tracks the overall stock market. When children turn 18, they can withdraw funds for education, buying a home or starting a business.
Bessent said employers, family members and philanthropists can invest in the accounts, and that the administration hopes states will also eventually create programs to invest in the accounts.
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