The proposed government-funded savings accounts for American children could grow to $1 million in 50 years with additional investments, says one businessman.
WASHINGTON—President Donald Trump held a high-profile business roundtable at the White House on Monday to highlight the “Invest America Act.”
The proposed legislation, introduced by Sen. Ted Cruz (R-Texas) would provide $1,000 in government-funded savings—dubbed “Trump Accounts”—for every American child born between Jan. 1, 2025, and Dec. 31, 2029, with money reclaimed from welfare reforms that eliminate “waste and fraud,” according to the president.
“It will make it possible for countless American children to have a strong start in life at no cost to the American taxpayer, absolutely no cost. It’s going to have a huge impact,” Trump said.
“It’s a pro-family initiative that will help millions of Americans harness the strength of our economy to lift up the next generation, and they’ll really be getting a big jump on life, especially if we get a little bit lucky with some of the numbers and the economies into the future,” Trump said.
Dozens of business leaders—members of the Invest America CEO Council—joined the president at the meeting to discuss how the investments could create opportunities in the future.
“It’s not just an account, it’s a launchpad,” Dara Khosrowshahi, Uber CEO, said during the event.
The accounts will also encourage investment and promote a better understanding of the free market through hands-on experience, according to multiple panelists.
For those that continue contributing to the savings accounts, the values could top $1 million in 50 years if $750 is added every year, Brad Gerstner—founder, chairman, and CEO of Altimeter Capital—said during the panel.
Family members, friends, and businesses can contribute up to $5,000 annually to individual accounts, which grow tax-deferred until the child reaches the age of 18, after which distributions are taxed at the existing capital gains rate, according to the text of the bill.
The leader of Dell computers, 0ne of the first companies to support the act, vowed to match the government’s contributions for every child born to a Dell employee.
“I believe this is an incredible moment for all of us here today … as we come together to invest in the future of our country,” Michael Dell, CEO of the computer giant, said during the panel.
He said the new program would align with “our core belief that opportunity should begin at birth.”
