How do ‘Trump accounts’ work – and who will benefit?

The Guardian - World NewsCenter-LeftEN 3 min read 100% complete by Carter ShermanDecember 2, 2025 at 11:09 PM

AI Summary

medium article 3 min

A new initiative called "Trump accounts," established as part of a tax and spending bill, aims to provide investment accounts for American children. Every child born between 2025 and 2028 will receive an initial $1,000 deposit from the government, with accounts becoming active on July 4, 2026. Parents or guardians manage the accounts, and contributions up to $5,000 annually are allowed from various sources, excluding the initial government contribution. Tech billionaire Michael Dell and his wife are donating $6.25 billion to provide an additional $250 to children in lower-income zip codes. The funds will be invested in low-cost stock index funds managed by private companies. Withdrawals are permitted after age 18, but function like retirement accounts, potentially incurring tax penalties.

Key Entities & Roles

Key Player Opposition Context

Michael Dell ×280% Donald Trump ×9100% United States ×4100%

Keywords

trump accounts 100% investment accounts 80% tax and spending bill 70% trust funds 60% retirement account 50% initial deposit 50% donations 40% stock market 40%