As part of President Donald Trump‘s pitch to Americans on affordability and the economy under his administration, the U.S. Treasury and White House on Wednesday celebrated the upcoming launch of a program they view as a key milestone: Trump Accounts.
A provision of Trump’s tax legislation, Trump Accounts can be opened for any child under 18 years old who is a U.S. citizen and has a valid Social Security number. Newborns will be given $1,000 when the account is opened in what the IRS calls a “pilot program.”
That money is then invested in the stock market by private firms, and the child can access the money when they turn 18. The money can be used for eligible purposes, including paying tuition, starting a business or making a down payment on a home.
Administration officials and Republican lawmakers promoted the program during Wednesday’s U.S. Treasury event.
U.S. Sen. Katie Britt, R-Alabama, participated in a panel during the event and described Trump Accounts as a way to introduce children to investing at an early age, saying early exposure to the market could help build long-term financial security.
Britt said the accounts are designed to allow small contributions to compound over time, particularly for children who might not otherwise have access to the stock market.
U.S. Sen. Ted Cruz, R-Texas, agreed that early investment is key.
“The more you invest early on, the more it grows,” he said.
Cruz said the program includes two accelerators he described as “turbo-charging” wealth building, including allowing employers to contribute to employees’ children’s accounts and enabling philanthropists to donate funds for broader distribution.
In Alabama, lawmakers in both the House and Senate in committees on Wednesday approved identical bills that would exempt from state income tax employer contributions to Trump Accounts for an employee or the employee’s dependent.
States can contribute as well, and Cruz said Texas is considering making an additional contribution.
Britt said she will push for participation from Alabama lawmakers and business leaders.
Britt said being able to build wealth this way will be “transformational.”
“It’s going to change this entire generation, and I believe our nation for years and years to come,” she said.
Trump cast the program as part of a broader effort to reshape the nation’s economic future.
The investments will put money “in the hands of young Americans who otherwise have really started out with nothing,” Trump said.
“Every president in modern history has left our children with nothing but debt,” Trump said. “But under this administration, we’re going to leave every child with real assets and a shot at financial freedom.”
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