Bessent to Newsmax: Trump Accounts Give Kids a Stake in Economy

Treasury Secretary Scott Bessent on Wednesday promoted a new federal savings program for children born during President Donald Trump's term, calling it a "game changer" that he told Newsmax would expand stock market participation, boost financial literacy, and encourage long-term saving.

Speaking with Newsmax's Alana Austin from Capitol Hill, Bessent said the initiative is designed to "set up the American families, American children for success," adding, "We are giving them a stake in our great innovation economy."

Bessent said families can apply for what he called "Trump accounts" through a government website, with the federal government contributing $1,000 per eligible child, which would be invested in a stock index fund and locked until the child turns 18.

"Every family can apply for their Trump accounts, trumpaccounts.gov, and go in," Bessent said. "The federal government is going to put in $1,000 that will be invested into a stock index fund, and those can't be accessed until the child is 18. At age 18, they can either take it out or roll it into a retirement account."

Bessent described the program as part of a broader administration agenda.

"President Trump is going to have some incredible wins over the next four years: tax deals, peace deals, trade deals," the secretary said.

He also framed the accounts as a long-term supplement to retirement security.

"It is a great supplement for Social Security," he said. "So you'll have your Social Security, and then you will have what could be if no other money is added at current compounding rates, half [of] $1 million when you retire."

Bessent said the accounts could be increased through contributions from families and the private sector.

"Employers can contribute, parents can contribute," he said. "Relatives can add to those accounts, companies. We're going to have a big announcement of all the companies that are going to do it. We're hoping to get all the S&P 500 companies to do it."

He also said he expects additional participation from states.

"We think that there may be 20 states who may top up the accounts," Bessent said, adding that the administration hopes some blue states will join.

Bessent said the initiative is intended to broaden access to investing because many families are not connected to the stock market.

"So what is historical about this is not only making every American child a shareholder, every American family, because right now, 38% of American households have no exposure to the stock market, so they don't have exposure to our great innovation, the American dream," he said. "They will."

On financial literacy, Bessent said the accounts would help make concepts like compounding more tangible.

"For many kids, it's an abstract concept," he said. "But now, because of these Trump accounts that families, children are going to be able to look every day, every week, every month on their phones, they're going to be able to see the value of compounding."

He described the initiative as a shift in how families relate to markets. "So I think this is a game changer," Bessent said. "It moves it from some abstract concept on the corner of Wall and Broad in New York, and it brings it into every household."

Bessent said the concept has drawn bipartisan interest, even though the larger legislative package containing the provision did not receive Democrat votes. "This is bipartisan," he said, pointing to prior support from Sens. Ted Cruz, R-Texas, and Cory Booker, D-N.J.

Bessent also tied the program to the administration's economic message.

"The president is focused on Main Street. Wall Street always does well," he said. "And I said, this is the biggest merger in history. We are bringing Wall Street to Main Street."

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