Who could benefit the most from Trump's investment accounts for children

By — Paul Solman Paul Solman By — Diane Lincoln Estes Diane Lincoln Estes By — Ryan Connelly Holmes Ryan Connelly Holmes Leave your feedback Share Copy URL https://www.pbs.org/newshour/show/who-could-benefit-the-most-from-trumps-investment-accounts-for-children Email Facebook Twitter LinkedIn Pinterest Tumblr Share on Facebook Share on Twitter Transcript Audio Trump Accounts are officially open. They’re the first federal tax-advantaged investment accounts for kids. Some 87 companies, foundations, individuals and states have announced contributions to the accounts. The question is, can they deliver the benefits that are being promoted? Economics correspondent Paul Solman explains. Read the Full Transcript Notice: Transcripts are machine and human generated and lightly edited for accuracy. They may contain errors. Amna Nawaz: Well, Trump Accounts are officially open. They're the first federal tax-advantaged investment accounts for kids. President Trump celebrated the launch this morning in the Oval Office. President Donald Trump: These children are going to have, actually, accounts. They're going to learn about finance a little bit. They can watch it. We're going to all watch it grow together. Amna Nawaz: Some 87 companies, foundations, individuals, and states have announced contributions to the accounts. The question is, can they deliver the benefits over the long haul that are being promoted? Our economics correspondent, Paul Solman, walked through the basics after the new accounts became law. Here's an updated look at what you need to know. Donald Trump: Trump Accounts will be the first, I guess you could say, real trust funds for every American child. Paul Solman: To which tech billionaire Michael Dell added: Michael Dell, CEO, Dell: We believe the smartest investment that we can make is an investment in children. Paul Solman: So what exactly are these so-called Trump Accounts? Part of last year's One Big Beautiful Bill Act, they're tax-advantaged savings accounts invested in a low-cost stock index fund. They're available for every American child up to age 18. Families opt in through a tax form and can contribute $5,000 annually. For kids born between 2025 and 2028, Uncle Sam salts away $1,000. Now, more than six million children have been signed up, but only about 1.4 million were young enough to qualify for the government money. Philanthropists, employers, and states can also contribute to the accounts. Susan and Michael Dell were the first of many contributors. Brad Gerstner, Entrepreneur: Moms and dads adding five, 10 bucks a week, kids saving a little money in the summertime. Philanthropists like the Dells, states like the state of Texas have said they're going to add $1,000 to these accounts. Paul Solman: Silicon Valley entrepreneur Brad Gerstner helped make the idea a reality. Brad Gerstner: The objective here is to get the 70 percent Americans who feel left out and left behind by capitalism into the game, to make everybody a capitalist