This July 4, President Donald Trump's administration will launch the so-called Trump Accounts, a new savings and investment program that will provide $1,000 to babies born between 2025 and 2028, including those whose parents are immigrants, as long as the minor meets the requirements for US citizenship and has a Social Security number.

The initiative will be presented as part of the celebrations for the 250th anniversary of the United States and seeks to encourage the creation of wealth from childhood through investment accounts managed by private financial institutions.

According to information published by The Associated Press (AP), the money will be invested in index funds linked to the US stock market and will remain blocked until the beneficiary turns 18. The resources can only be used for specific purposes, such as purchasing a home, higher education or starting a business.

Who will be able to receive the $1,000 support?

The federal incentive will be available only to minors born between January 1, 2025 and December 31, 2028. Although parents will be able to open accounts for children of adult age, they will no longer receive the initial deposit from the government.

One of the aspects that has drawn the most attention is that the immigration status of the parents will not be an impediment to opening the account, as long as the child is a US citizen and meets the established requirements.

In addition to government support, the program will allow contributions from family members, employers and organizations. Parents will be able to deposit up to $2,500 annually before taxes, while the total limit on private contributions will be $5,000 per year.

During the presentation of the project, Trump assured that the objective is to strengthen the economic independence of new generations.

"We are doing something much better than giving a handout to the next generation. We are giving them ownership of the future of the United States," the president said.

Millionaires promote the program, but criticism also arises

The Trump Accounts already have the support of several businessmen. Michael and Susan Dell announced a $6.25 million donation to benefit children who don't qualify for the federal deposit, while Micron Technology CEO Sanjay Mehrotra committed another $250 million.

Companies such as Uber, Intel, IBM, Nvidia and Steak 'n Shake will also participate, which are studying incorporating contributions to these accounts as part of their employment benefits.

However, specialists have questioned the program, considering that it does not address the immediate needs of families with lower incomes. Organizations and analysts point out that the benefit will last until children reach the age of majority, while recent cuts to programs such as Medicaid and SNAP could affect millions of families in the present.

In addition, critics warn that families with higher incomes will have more possibilities of increasing their children's assets through additional contributions, thus widening the economic gap. According to calculations cited by AP, an initial investment of $1,000, with an annual return of 7%, would reach approximately $3,570 after 18 years.

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