Trump Accounts Gain Momentum: Dalio and Dell Back Child Investment Plan

The Trump administration’s proposed child investment plan is attracting major private backers. Treasury Secretary Scott Bessent announced on December 17 that billionaire investor Ray Dalio will help fund the accounts. This follows a similar commitment from tech magnate Michael Dell.

This growing private support aims to create a nationwide public-private partnership. The initiative, known as Trump Accounts, seeks to provide a financial foundation for millions of American children. According to Bessent, the goal is to ensure long-term wealth creation for families.

Private Philanthropy Fuels State-Level Rollout

Secretary Bessent detailed the strategy at a promotional event. He stated Ray Dalio will specifically fund accounts for eligible children in Connecticut. The administration is actively seeking similar philanthropic commitments for every other US state.

This state-by-state approach is gaining traction. Bessent indicated that twenty additional states are now considering adding their own funds to the federal initiative. The program is designed to supplement the initial government contribution with private capital.

How the Proposed Child Investment Accounts Would Work

Trump Accounts are government-backed and tax-advantaged. They are intended for US children born between 2025 and 2028. Each eligible child would receive a $1,000 seed deposit from the federal government.

Families could then make voluntary contributions to the accounts. The funds would be invested in US companies. The money would grow over time and become accessible when the child turns 18 for approved uses like education or a first home.

The Treasury positions the plan as a major pro-family savings effort. Officials believe it could help narrow long-standing wealth gaps. By starting investment early, the program aims to give children a tangible asset as they enter adulthood.

The backing from influential figures like Ray Dalio signals serious momentum for the child investment account proposal. This private sector endorsement could be crucial as the administration seeks broader support for the Trump Accounts initiative.

A quick knowledge drop for you

Q1: What exactly are Trump Accounts?

Trump Accounts are proposed government-backed investment accounts for children. They would provide a $1,000 federal seed deposit for kids born between 2025 and 2028. The tax-advantaged funds would grow until accessed at age 18.

Q2: Who is funding these accounts?

The federal government would provide the initial deposit. Private philanthropists like Ray Dalio and Michael Dell are pledging to add state-specific funds. The plan relies on this public-private partnership model.

Q3: When would the program start?

The accounts are a proposed initiative, not yet active law. If implemented, they would launch for children born starting in 2025. The administration is currently building support and finalizing the framework.

Q4: How can the money be used later?

Accumulated funds could be used for qualified expenses once the child turns 18. This includes higher education costs, a first home purchase, or rolling it into a retirement account. Rules would govern permissible withdrawals.

Q5: Why are investors like Dalio supporting this?

Backers see it as a long-term investment in American families and the economy. They believe providing children with capital can foster financial literacy and create wealth. It is viewed as a tool for broader economic mobility.