Former President Donald Trump has proposed a new policy initiative called **“Trump accounts”**, aimed at fostering generational wealth through market-driven savings. The plan would provide a **\$1,000 government-funded, tax-deferred investment account** to every American child born between **December 31, 2024, and January 1, 2029**. Structured like a 401(k) or IRA, families could contribute up to **\$5,000 annually**, potentially growing the account to over **\$500,000 by age 25** with average stock market returns.
The accounts would be **owned by the child** and managed by guardians until adulthood, promoting **financial literacy and long-term security**. Trump positions the plan as a **pro-family, bipartisan effort**, blending **individual responsibility** with **government support**. However, critics point out that the program is funded by cuts to **Medicaid, SNAP**, and other social programs, raising concerns about its impact on vulnerable populations.
Estimated to benefit **15–16 million children**, the plan could cost at least **\$15 billion upfront**, not including administrative overhead. It’s part of a broader legislative package that includes **tax reforms** such as tip and overtime pay exemptions, auto loan interest deductions, and an increased child tax credit.
While the plan is praised for encouraging equity market participation, it also faces challenges, including market volatility, funding sustainability, and logistical complexity. Its success will hinge on execution, economic performance, and political will—making it a bold but risky economic experiment.