How federal $1,000 'Trump Accounts' work for new Twin Cities parents
The piece explains that under the 2025 One Big Beautiful Bill Act, every baby born in the U.S. from 2025 through 2028 is eligible for a federally seeded $1,000 'Trump Account' once a parent or guardian opens an approved investment account, with the money locked in low‑fee U.S. stock index funds until the child turns 18. It clarifies that funds can only be used for restricted purposes — such as tuition, a first‑home down payment or starting a business — and withdrawals for other uses will trigger taxes and penalties, similar to misuse of a 529 plan. The article notes that Michael and Susan Dell have separately committed $6.25 billion to add a $250 seed for some lower‑income children age 10 and under in qualifying ZIP codes, which include parts of Minneapolis and St. Paul, but those seeds are distinct from the $1,000 newborn accounts. It walks through how Twin Cities parents actually claim the benefit (which institutions are participating, what documents they need, and basic deadlines) and highlights fine print around income‑tax treatment and what happens if parents fail to open an account during the eligibility window. The context makes clear this is not an automatic mailed check but an opt‑in long‑term asset program that could meaningfully affect wealth‑building for new metro families who understand and use it.
📌 Key Facts
- Babies born in 2025–2028 qualify for a $1,000 federally funded 'Trump Account' only if a parent or guardian opens an approved investment account in the child’s name.
- The funds must be invested in low‑fee U.S. stock index funds and are locked until age 18, when they can be used only for specified purposes like tuition, a first‑home down payment or starting a business.
- $6.25 billion from Michael and Susan Dell will separately add a $250 seed to some lower‑income children age 10 and under in designated ZIP codes, including areas of the Twin Cities, but that program is distinct from the newborn $1,000 accounts.
📊 Relevant Data
In 2022, the median wealth of White families was $285,000, compared to $44,900 for Black families and $61,600 for Hispanic families, representing wealth gaps where White families have about six times the wealth of Black families and five times that of Hispanic families.
Greater Wealth, Greater Uncertainty: Changes in Racial Inequality in the Survey of Consumer Finances — Federal Reserve
In the fourth quarter of 2023, the homeownership rate was 73.8% for non-Hispanic White Americans, 63% for Asian Americans, 49% for Hispanic Americans, and 45.9% for Black Americans.
Homeownership Rates by Race and Ethnicity — Eye On Housing
In 2022, college enrollment rates for 18- to 24-year-olds were 61% for Asian individuals, 41% for White, 36% for those of Two or more races, 34% for Hispanic, 32% for Black, 25% for Pacific Islander, and 20% for American Indian/Alaska Native.
College Enrollment Rates — National Center for Education Statistics
Of all live births in Minnesota during 2021-2023 (average), 9.5% were Hispanic, 66.4% were White, 12.1% were Black, 1.2% were American Indian/Alaska Native, and 7.9% were Asian (implied from remaining percentage).
Percentage of births by race/ethnicity: Minnesota, 2021-2023 Average — March of Dimes
Children's Savings Accounts (CSAs) are effective in reducing racial wealth inequities because Black and Hispanic/Latino young adults disproportionately experience student debt and lower asset accumulation, and CSAs build educational expectations and access to postsecondary education.
How Children's Savings Accounts Can Help Narrow the Racial Wealth Divide — National League of Cities
In 2025, 24% of White households directly hold stocks compared to 13% of Black households and 8% of Hispanic households.
Study: Race, Ethnicity, and Personal Finance in America — The Motley Fool
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