Donald Trump launches 'Trump accounts' for kids. The state will deposit 1,000 dollars for each newborn / What the president promises for the future of young people

President Donald Trump on Wednesday announced the launch of federal government-backed investment accounts for children and urged American companies to contribute to employees' family accounts, according to Reuters.

The White House will create these investment accounts for newborns over the next three years, each receiving an initial amount of government funds. The initiative comes as Trump and the Republican Party try to address voters' concerns about the cost of living ahead of November's general elections.

“Decades from now, I think these Trump accounts will be remembered as one of the most transformative public policy innovations of all time,” Trump said at the Washington event, attended by many babies, to underscore his administration's pro-family message.

The accounts — which bear Trump's name — were created last year through the One Big Beautiful Bill Act, the main tax-and-spending bill championed by the president and the Republican Party.

The US Treasury Department has announced that it will deposit $1,000 into investment accounts for all children born between 2025 and 2028, with an estimated 25 million eligible families.

The money will be invested by the state in low-cost index funds, which are capitalized tax-free along the way. Income tax will be paid when the amounts are withdrawn.

“Young people will buy homes they would never have dreamed of”

The accounts will officially go live on July 4 this year, and Treasury Secretary Scott Bessent said more than 500,000 families have already signed up.

Trump said the impact of these accounts “will not only be measured in wealth created, but will be seen in young people buying homes they never dreamed of. It will be seen in degrees earned, companies started, families formed and more children born.”

The White House encourages families to make additional contributions to these accounts, and some private investors have already contributed large sums, such as the $6.25 billion investment announced by entrepreneur Michael Dell and his wife, Susan.

White House spokeswoman Karoline Leavitt said Wednesday that these accounts would solve the problem of a lack of savings among many American families.

Without additional contributions, the administration estimates the accounts will reach about $5,800 when the children turn 18.

But if families contribute the maximum $5,000 a year, Leavitt said an account could reach nearly $1.1 million by the time the child turns 28. However, she did not present the calculations on the basis of which the administration arrived at this estimate.

Financial analysts estimate that, with maximum contributions, the portfolio value would be around $700,000 at age 28.

Analysts have compared the Trump accounts to retirement accounts, as they convert to a traditional IRA at age 18, while also pointing out that taxes will be due when the money is withdrawn.

Major US companies such as Visa and IBM have pledged to contribute to the accounts of their American employees, and Trump called on “all employers” in the country to follow suit.

Ahead of the midterm elections, in which Republicans will try to maintain control of Congress, the Trump administration is promoting the bills as an initiative that can be supported by both Democrats and Republicans.

Republicans see Trump as their most effective economic messenger and are banking on him to win over skeptical voters, even as polls show more and more Americans are dissatisfied with his handling of the economy.

To promote the initiative, the president invited rapper Nicki Minaj on stage, who stood out in a white fur coat in a Washington crowd dominated by dark suits.

“I'm probably the president's number one fan, and that's not going to change,” Minaj said, adding that she won't be deterred by opponents of her policies.