At an investment roundtable on Monday, President Trump laid out more details of a proposed investment in newborns that would be part of his flagship tax package.
The tax-deferred "Trump Account" would apply to everyone born starting in 2025 through 2028. The government would issue $1,000 to be invested in the stock market and accessible once an individual turned 18.
Assuming a 7% rate of return and annual interest, a $1,000 investment would be worth more than $3,500 when a beneficiary turned 18.
Families would also be eligible to contribute more to the fund, potentially raising its return.
The plan would allow the money to go toward a down payment, education expenses or the costs of starting a business. Other uses would be allowed, but would be taxed more steeply.
It would apply to everyone whose parents held an eligible Social Security number and work authorization, which would make it more broadly available than some other social assistance programs.
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“This is a pro-family initiative that will help millions of Americans harness the strength of our economy to lift up the next generation,” President Trump said at the event at the White House on Monday. “They’ll really be getting a big jump on life, especially if we get a little bit lucky with some of the numbers and the economy.”
The proposal and Monday's event have backing from high-profile industry figures, including CEOs for Uber, Goldman Sachs, Salesforce and Robinhood.
"If there's one thing you should know about Robinhood, we move incredibly fast. We have an extreme sense of urgency. So we already have it working. We have a live app version of what Invest America could look like," Robinhood CEO Vlad Tenev told Scripps News. "I think that will help make it real, get people excited. And I think we can be ready within days. I mean, maybe not even weeks. As soon as we work out the details with Treasury on how we could administer these, we could have parents funding accounts for their children by the end of the year."
But to move the plan forward, Congress would have to pass President Trump's massive tax and spending bill. Lawmakers have signaled they would like to send the bill for the president's signature by July 4, but some Senators are still divided over the costs of the bill, or provisions that would change Medicaid or energy policy.
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