$1,000 'Trump Accounts' for 2025–2028 newborns
A new federal program will deposit $1,000 into investment accounts for all U.S. babies born 2025–2028 once parents open an account, with funds invested in low‑fee U.S. stock index funds and accessible at age 18 for restricted uses such as tuition, a home down payment or starting a business. Michael and Susan Dell also pledged $6.25 billion to add a $250 seed for some children age 10 and under in lower‑income ZIP codes who don’t qualify for the $1,000, changes that directly affect eligible Twin Cities families.
📌 Key Facts
- U.S. Treasury contributes $1,000 for babies born 2025–2028 after an account is opened; money must be invested in U.S. equity index funds with a 0.10% annual fee cap.
- Funds become accessible at age 18 for limited purposes (education, first‑home down payment, starting a business).
- Parents can contribute up to $2,500 pretax annually; total yearly contributions are capped at $5,000 (government/charity contributions excluded from the cap).
- $6.25B Dell pledge adds a $250 seed for eligible children 10 and under in ZIP codes with median family income ≤ $150,000 who are not receiving the $1,000 newborn deposit.
- Older children (born before 2025) can still open accounts and receive contributions, but do not get the $1,000 federal seed.
📊 Relevant Data
In 2022, the median wealth for White households was $285,010, compared to $44,890 for Black households and $61,620 for Hispanic households.
Greater Wealth, Greater Uncertainty: Changes in Racial Inequality in the Survey of Consumer Finances — Federal Reserve
In 2022, 66% of White families owned stocks directly or indirectly, compared with 39% of Black families and 28% of Hispanic families.
A booming U.S. stock market doesn’t benefit all racial and ethnic groups equally — Pew Research Center
In 2024-2025, 87% of households earning $100,000 or more owned stock, compared to 28% of households earning less than $50,000.
In 2025, the average contribution from college savings funds like 529 plans was $7,726 for households with income $150,000+, compared to $1,551 for households with income less than $50,000.
How America Pays for College 2025 — Sallie Mae
A $1,000 investment in the S&P 500 20 years ago would be worth more than $5,500 today based on historical performance.
If You'd Invested $1,000 in the S&P 500 20 Years Ago, Here's What It Would Be Worth Today — Yahoo Finance