The U.S. Treasury Department asked major philanthropic donors to contribute to new investment accounts for children on Wednesday as part of what Secretary Scott Besent called a “50-country challenge” to raise money for children. Trump accounts program.
“The President is calling on our nation’s business and philanthropic leaders to help us make America great again by securing the financial future of America’s children,” Besant said in a speech.
Billionaire hedge fund founder Ray Dalio, along with his wife Barbara, announced they would commit $250,000 to $300,000 to children in Connecticut who live in zip codes where the average income is less than $150,000. Dalio founded the investment firm Bridgewater Associates and lives in Connecticut.
Dalios’ $75 million commitment follows A $6.25 billion pledge from billionaires Michael and Susan Dell Earlier in December. Dells promised to invest $250 in the accounts of 25 million children ages 10 and younger who live in ZIP codes across the country who also have that middle income.
The new investment accounts were created as part of President Donald Trump’s accounts Tax and spending legislationpassed over the summer. Under the new law, the US Treasury will deposit $1,000 into investment accounts for children born during Trump’s second term.
The Treasury Department has not yet launched the new accounts.
“Beginning on the Fourth of July, the 250th anniversary of our nation’s founding, parents, family members, employers and friends will be able to contribute up to $5,000 to each Trump account each year,” Picent said Wednesday.
The Treasury Department will set up one for every child in the United States with a Social Security number, but private companies will eventually manage the accounts, said venture capitalist Brad Gerstner, who championed the accounts. Parents or guardians will have to claim the accounts on behalf of their children. For children born before Trump took office who do not qualify for funds from the Dells and Dalios, their families can open and fund their own Trump account if they choose.
The money in the accounts must be invested in an index fund that tracks the overall stock market. When children turn 18, they can withdraw money for their education, buy a house, or start a business.
Employers, family members and philanthropists can put money into the accounts, Pisant said, and the administration hopes states will eventually set up programs to invest in the accounts as well.
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