Posted on 06/10/25
| News Source: TNND
Several lawmakers and major financial industry leaders shared support for a provision in the Republican-backed “big, beautiful bill” which would award newborns an investment account at birth.
The provision would allow all newborn American babies to receive a one-time “Trump Account” investment of $1,000 from the federal government. A child’s guardian could then contribute up to $5,000 yearly to the account, allowing the money to compound throughout the child’s life.
Several major finance leaders cheered the provision as a major win for future generations of Americans.
“This initiative gets at the core of binding those future generations to the benefits and the potential of America’s great companies and markets,” Goldman Sachs CEO David Solomon said. “Early childhood investments have far-reaching benefits, and Goldman Sachs is proud to support his initiative.”
Altimeter Capital CEO Brad Gerstner added the accounts would allow more Americans to feel competitive in the stock market.
“It makes America an ownership society again because all of those kids will see the benefit of compounding interest,” he said. “You are giving the shot for every American to feel like they’re in the game again.”
Speaker Mike Johnson, R-La., compared the account to a 401(k) retirement account used by adult workers.
“Trump Accounts take that same principle and they apply it from the very beginning of Americans’ lives,” he said. “It’s a bold, transformative policy that gives every eligible American child a financial head start from day one.”
Also cheering the initiative was Rep. Jason Smith, R-Mo.
“The Trump Accounts are a historic investment in our children’s’ futures,” he wrote via X. “Whether a child is born on a city block or a county road, these accounts will give America's children ownership in the success of our nation’s economy.”