Treasury secretary predicts 25 million will take advantage of new ‘Trump Accounts’ for kids
WASHINGTON — New “Trump accounts” that provide free savings to millions of babies are proving popular, with 600,000 American families already enrolled in the program that officially launched Wednesday, Treasury Secretary Scott Bessent told NBC News.
Bessent said he predicts 25 million Americans will take advantage of the new accounts, including a pilot program that will deposit $1,000 into accounts for babies with a Social Security number born between Jan. 1, 2025, and Dec. 31, 2028. Family members can then contribute up to $5,000 a year, with the funds available to the child once he or she turns 18.
Parents can also create Trump accounts for children under 18 born before 2025, according to the White House, but they will not receive the $1,000 in starting cash. On Wednesday, President Donald Trump announced that “dozens of large employers” have pledged to donate to the program for their employees’ children, contributing up to $2,500 per employee per year. These include Uber, Intel, Nvidia, Hearst and others, as well as Comcast, the parent company of NBC News.
Bessent said the accounts were “part of the president’s plan for American families and giving them a stake in this great economy.”
This provision was included in Trump’s mega tax bill last year, without income caps or other requirements. “We want everyone to be able to participate,” Bessent said, adding that philanthropists including Michael and Susan Dell will contribute an additional $250 to families living in ZIP codes where the median income is less than $150,000. “We think up to 20 states” will also contribute to the program, Bessent said.
“Anyone with a child under 18 should open an account,” he said.
In a wide-ranging interview with NBC News, Bessent touted “a great economy” but warned Congress to fund the government ahead of a looming cliff edge Friday. “The government shutdown will hurt the economy,” Bessent said. “I don’t think we should close.”
After Border Patrol agents shot and killed a second protester in Minneapolis this month, many Democrats on Capitol Hill said they would not fund the Department of Homeland Security unless Republicans agreed to reforms.
“President Trump,” Bessent said, “has been in contact with Republican leaders. He has been in contact with some Democratic leaders” to find a way forward.
Trump said Tuesday he would announce a new choice to lead the Federal Reserve “soon,” after his administration subpoenaed Chairman Jerome Powell in a criminal investigation, alleging Powell mismanaged funds intended for a $2.5 billion renovation of the Fed’s headquarters in Washington. The unprecedented move, criticized by some Republicans and privately by Bessent himself, ended a years-long public feud between Trump and Powell, with the White House attempting to pressure the Federal Reserve into lowering interest rates.
Bessent said he believes the Federal Reserve is independent. “Being independent does not mean being unaccountable, which is why we are facing significant cost overruns,” he told NBC News on Wednesday. “So, you know, I think some accountability will help with their independence.”
Powell’s term as president ends in May.
Regarding Venezuela, Bessent said his agency was “studying on a case-by-case basis” the lifting of sanctions imposed on oil in that country after the United States removed leader Nicolás Maduro earlier this month.
“Things are going very well with the Venezuelan leaders,” he said. “I think we’re going to open up or remove a lot of the oil for the U.S. oil companies first. And again, things are moving at a good pace. The government is deliberately releasing political prisoners. So the relationship between the U.S. and the current Venezuelan government is good. As long as that continues, I think we can see the sanctions lifted.”
