White House Says 6.5 Million Trump Accounts Opened for Children, Drawing Scrutiny Over Wealth Gap
Updated
Updated · Orlando Sentinel · Aug 10
White House Says 6.5 Million Trump Accounts Opened for Children, Drawing Scrutiny Over Wealth Gap
3 articles · Updated · Orlando Sentinel · Aug 10
Summary
$1.5 billion has been deposited into 6.5 million Trump Accounts since the program launched, the White House said, with eligible children born during Trump’s second term receiving a $1,000 federal contribution.
The accounts invest in stock funds and allow up to $5,000 a year in contributions, but most withdrawals before age 59½ face penalties, limiting their usefulness for families seeking money at age 18.
Financial advisers said parents should claim any free government or philanthropic money, then consider alternatives such as 529 plans for college savings or other vehicles for home down payments.
Critics said the structure could widen inequality because higher-income families are better able to keep contributing, while donations like the Dell Foundation’s $6.5 billion pledge cannot be targeted only to low-income children.
Supporters still see the accounts as a possible foundation for future policy, pointing to models like Connecticut’s baby bonds, which automatically give $3,200 to babies in Medicaid families.