$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.
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📊 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. ([Federal Reserve](https://www.federalreserve.gov/econres/notes/feds-notes/greater-wealth-greater-uncertainty-changes-in-racial-inequality-in-the-survey-of-consumer-finances-accessible-20231018.htm)) ([Federal Reserve](https://www.federalreserve.gov/econres/notes/feds-notes/greater-wealth-greater-uncertainty-changes-in-racial-inequality-in-the-survey-of-consumer-finances-accessible-20231018.htm)) ([Federal Reserve](https://www.federalreserve.gov/econres/notes/feds-notes/greater-wealth-greater-uncertainty-changes-in-racial-inequality-in-the-survey-of-consumer-finances-accessible-20231018.htm)) ([Federal Reserve](https://www.federalreserve.gov/econres/notes/feds-notes/greater-wealth-greater-uncertainty-changes-in-racial-inequality-in-the-survey-of-consumer-finances-accessible-20231018.htm)) ([Federal Reserve](https://www.federalreserve.gov/econres/notes/feds-notes/greater-wealth-greater-uncertainty-changes-in-racial-inequality-in-the-survey-of-consumer-finances-accessible-20231018.htm)) ([Federal Reserve](https://www.federalreserve.gov/econres/notes/feds-notes/greater-wealth-greater-uncertainty-changes-in-racial-inequality-in-the-survey-of-consumer-finances-accessible-20231018.htm)) ([Federal Reserve](https://www.federalreserve.gov/econres/notes/feds-notes/greater-wealth-greater-uncertainty-changes-in-racial-inequality-in-the-survey-of-consumer-finances-accessible-20231018.htm)) ([Federal Reserve](https://www.federalreserve.gov/econres/notes/feds-notes/greater-wealth-greater-uncertainty-changes-in-racial-inequality-in-the-survey-of-consumer-finances-accessible-20231018.htm)) ([Federal Reserve](https://www.federalreserve.gov/econres/notes/feds-notes/greater-wealth-greater-uncertainty-changes-in-racial-inequality-in-the-survey-of-consumer-finances-accessible-20231018.htm)) ([Federal Reserve](https://www.federalreserve.gov/econres/notes/feds-notes/greater-wealth-greater-uncertainty-changes-in-racial-inequality-in-the-survey-of-consumer-finances-accessible-20231018.htm))
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. ([Pew Research Center](https://www.pewresearch.org/short-reads/2024/03/06/a-booming-us-stock-market-doesnt-benefit-all-racial-and-ethnic-groups-equally/)) ([Pew Research Center](https://www.pewresearch.org/short-reads/2024/03/06/a-booming-us-stock-market-doesnt-benefit-all-racial-and-ethnic-groups-equally/)) ([Pew Research Center](https://www.pewresearch.org/short-reads/2024/03/06/a-booming-us-stock-market-doesnt-benefit-all-racial-and-ethnic-groups-equally/)) ([Pew Research Center](https://www.pewresearch.org/short-reads/2024/03/06/a-booming-us-stock-market-doesnt-benefit-all-racial-and-ethnic-groups-equally/)) ([Pew Research Center](https://www.pewresearch.org/short-reads/2024/03/06/a-booming-us-stock-market-doesnt-benefit-all-racial-and-ethnic-groups-equally/)) ([Pew Research Center](https://www.pewresearch.org/short-reads/2024/03/06/a-booming-us-stock-market-doesnt-benefit-all-racial-and-ethnic-groups-equally/)) ([Pew Research Center](https://www.pewresearch.org/short-reads/2024/03/06/a-booming-us-stock-market-doesnt-benefit-all-racial-and-ethnic-groups-equally/)) ([Pew Research Center](https://www.pewresearch.org/short-reads/2024/03/06/a-booming-us-stock-market-doesnt-benefit-all-racial-and-ethnic-groups-equally/)) ([Pew Research Center](https://www.pewresearch.org/short-reads/2024/03/06/a-booming-us-stock-market-doesnt-benefit-all-racial-and-ethnic-groups-equally/)) ([Pew Research Center](https://www.pewresearch.org/short-reads/2024/03/06/a-booming-us-stock-market-doesnt-benefit-all-racial-and-ethnic-groups-equally/))
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. ([Gallup](https://news.gallup.com/poll/266807/percentage-americans-owns-stock.aspx)) ([Gallup](https://news.gallup.com/poll/266807/percentage-americans-owns-stock.aspx)) ([Gallup](https://news.gallup.com/poll/266807/percentage-americans-owns-stock.aspx)) ([Gallup](https://news.gallup.com/poll/266807/percentage-americans-owns-stock.aspx)) ([Gallup](https://news.gallup.com/poll/266807/percentage-americans-owns-stock.aspx)) ([Gallup](https://news.gallup.com/poll/266807/percentage-americans-owns-stock.aspx)) ([Gallup](https://news.gallup.com/poll/266807/percentage-americans-owns-stock.aspx)) ([Gallup](https://news.gallup.com/poll/266807/percentage-americans-owns-stock.aspx)) ([Gallup](https://news.gallup.com/poll/266807/percentage-americans-owns-stock.aspx)) ([Gallup](https://news.gallup.com/poll/266807/percentage-americans-owns-stock.aspx))
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. ([Sallie Mae](https://www.salliemae.com/content/dam/slm/writtencontent/Research/HAP_2025.pdf)) ([Sallie Mae](https://www.salliemae.com/content/dam/slm/writtencontent/Research/HAP_2025.pdf)) ([Sallie Mae](https://www.salliemae.com/content/dam/slm/writtencontent/Research/HAP_2025.pdf)) ([Sallie Mae](https://www.salliemae.com/content/dam/slm/writtencontent/Research/HAP_2025.pdf)) ([Sallie Mae](https://www.salliemae.com/content/dam/slm/writtencontent/Research/HAP_2025.pdf)) ([Sallie Mae](https://www.salliemae.com/content/dam/slm/writtencontent/Research/HAP_2025.pdf)) ([Sallie Mae](https://www.salliemae.com/content/dam/slm/writtencontent/Research/HAP_2025.pdf)) ([Sallie Mae](https://www.salliemae.com/content/dam/slm/writtencontent/Research/HAP_2025.pdf)) ([Sallie Mae](https://www.salliemae.com/content/dam/slm/writtencontent/Research/HAP_2025.pdf)) ([Sallie Mae](https://www.salliemae.com/content/dam/slm/writtencontent/Research/HAP_2025.pdf))
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. ([Yahoo Finance](https://finance.yahoo.com/news/youd-invested-1-000-p-103000430.html)) ([Yahoo Finance](https://finance.yahoo.com/news/youd-invested-1-000-p-103000430.html)) ([Yahoo Finance](https://finance.yahoo.com/news/youd-invested-1-000-p-103000430.html)) ([Yahoo Finance](https://finance.yahoo.com/news/youd-invested-1-000-p-103000430.html)) ([Yahoo Finance](https://finance.yahoo.com/news/youd-invested-1-000-p-103000430.html)) ([Yahoo Finance](https://finance.yahoo.com/news/youd-invested-1-000-p-103000430.html)) ([Yahoo Finance](https://finance.yahoo.com/news/youd-invested-1-000-p-103000430.html)) ([Yahoo Finance](https://finance.yahoo.com/news/youd-invested-1-000-p-103000430.html)) ([Yahoo Finance](https://finance.yahoo.com/news/youd-invested-1-000-p-103000430.html)) ([Yahoo Finance](https://finance.yahoo.com/news/youd-invested-1-000-p-103000430.html))
If You'd Invested $1,000 in the S&P 500 20 Years Ago, Here's What It Would Be Worth Today — Yahoo Finance
📌 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.
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