Bessent Calls Trump Accounts ‘Rainy Day Funds’ And Slams ‘Out of Touch’ Critics As JPMorgan, BofA Back Plan
- Finance
ThePostMaster- 0
- 7 minutes read
Treasury Secretary Scott Bessent on Wednesday discussed how the newly introduced “Trump Accounts” could serve as “a rainy day fund” for the children when they reach adulthood.
Critics have warned that Trump Accounts could widen the U.S. wealth gap, as wealthy families can contribute the full $5,000 annually while lower-income households may struggle to save.
However, Bessent, in a conversation with CBS Saturday Morning co-host Kelly O’Grady, dismissed the concern, arguing the program targets middle- and lower-income families.
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He said critics are “out of touch,” emphasizing that many Americans can’t afford even a $500 emergency expense, making claims about “only $5,000” unrealistic and politically motivated.
He also mentioned that philanthropists could direct their donations to lower-income areas, and also choose by school districts or economic quintiles, potentially mitigating the wealth gap issue.
Despite these concerns, Bessent emphasized that the accounts have already garnered 600,000 sign-ups in the first week.
The Trump Accounts program, included in the “big, beautiful bill” tax and spending law, will create tax-advantaged investment accounts for about 25 million children born between Jan. 1, 2025, and Dec. 31, 2028. Each eligible child will receive a $1,000 government-funded investment in the stock market. Families can also open accounts for children under 18, but without the initial $1,000. Annual contributions are capped at $5,000 per child.
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On Wednesday, Bank of America (NYSE:BAC) and JPMorgan Chase (NYSE:JPM) announced they will match the government’s $1,000 contribution for employees who open a 503A Trump Account. Bank of America added that it will also allow eligible workers to make pre-tax contributions to their children’s “Trump Accounts.”
Meanwhile, Grammy-nominated rap artist Nicki Minaj also committed to contributing between $150,000 and $300,000 to fund her fans’ Trump accounts.
In December, Founder of Dell Technologies, Inc. (NYSE:DELL) Michael Dell and his wife Susan pledged $6.25 billion to the Trump Accounts, followed by Ray Dalio of Bridgewater Associates.
