U.S. President Donald Trump is forcefully promoting the "Trump Accounts" program, which would have the federal government pay $1,000 (about 1.42 million won) per child born during his second term, as a policy to support ordinary Americans.
On the 24th (local time), President Trump delivered a state address lasting 1 hour and 47 minutes, spending most of the time trying to persuade the public on his economic policy ahead of the November midterm elections. The Trump Accounts policy for child support is one of them, and Trump said all American children would be provided with tax-free investment accounts, and that by the time they turn 18, the account balance could grow to more than $100,000.
The accounts are reportedly available to U.S. citizens born between Jan. 1, 2025, and Dec. 31, 2028. Children must have a U.S. Social Security number (SSN, a nine-digit unique identifier issued by the Social Security Administration), and the accounts will be opened in the form of IRAs (individual retirement accounts) that can invest in financial products such as index funds. The federal government will provide a one-time $1,000 seed money grant, and while minors born before 2025 can open accounts, they are excluded from the grant.
The program will be fully implemented starting this summer, and parents must use Form 4547 to report information about the accounts to the IRS. This is a new form, and the number is seen as symbolizing Trump's order of tenure. Verification will proceed sequentially from May, and the administration said the government grant will be deposited into accounts by July 4. Ownership of the accounts rests with the child, but parents will serve as custodians until the child turns 18.
In addition to the federal grant, additional contributions of up to $5,000 per year are reportedly allowed. Employers can also contribute up to $2,500 per year to employees' children's accounts, but this counts toward the individual contribution limit, while contributions from State Governments, local governments, and nonprofit organizations are not included in the annual cap, allowing for additional funding inflows by design.
Withdrawals will in principle be taxable until reaching retirement age, but exceptions are expected for specific purposes such as ▲ education expenses ▲ first-time home purchases ▲ childbirth and adoption ▲ medical expenses. Treasury Secretary Scott Bessent said, "It is known that about 3 million account openings have been applied for so far," adding, "Overall interest in the program is high."
The administration is actively encouraging participation from the ultra-wealthy and corporations. Michael Dell, founder of Dell Technologies, and his spouse, Susan Dell, said they would donate $6.25 billion, and hedge fund investor Ray Dalio announced a plan to contribute $250 to each account for children born in his home state of Connecticut, totaling $75 million.
Major corporations such as BlackRock, SoFi, and Charles Schwab have also introduced programs under which companies match a certain amount of employee contributions.
Meanwhile, there is criticism that President Trump is obsessed with putting his own name on major policies and facilities to highlight his achievements. Previously, Trump renamed a Washington, D.C., research institute that was slated to close in December as the "Trump Institute for Peace," and the John F. Kennedy Center for the Performing Arts was also renamed the Trump-Kennedy Center.
A service that expedites issuance of U.S. permanent residency for $1 million has also been named the "Trump Gold Card," and the official website that allows purchases of pharmaceuticals at the lowest prices, "TrumpRx," began operating this month.