SerpApi.Org
President Donald Trump promised that Trump Accounts could pull children out of poverty and give Americans the opportunity to invest in the stock market, but some parents say they're still waiting for the money to arrive.
On Wednesday, the president spoke at a Georgia high school to promote the investment accounts, which offer $1,000 in seed money to every child born during his second term. The accounts went live on July 4, two days before Trump rang the opening bells for the New York Stock Exchange and the Nasdaq from the Oval Office.
The tax-advantaged accounts, created last year through the president's tax and spending bill, can be opened for any child under 18. The Treasury Department touted 6.5 million sign-ups for Trump Accounts, with 1.5 million being eligible for the $1,000 seed funding for babies born from 2025 through 2028.
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Most of those families received the money within one or two days, the Treasury Department said. Proponents of the program say it's given more Americans a stake in the stock market.
Others hope it curbs the popularity of democratic socialists, who seek to raise taxes on corporations and wealthy people to ease the cost of food and healthcare for low- and middle-income Americans.
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After the Trump Accounts are set up, loved ones and even employers can contribute to them. Some billionaires have pledged philanthropic contributions.
The money can't be accessed until the child turns 18, and only then for specific purposes such as going to school, opening a business, or buying a home.
Some parents waited weeks for the deposit
Masaki and Kristina McLellan, new parents from New Jersey, told the Associated Press that they were wary of signing up for the accounts, believing that it was a promotional stunt for Trump. But the $1,000 incentive persuaded them after their daughter was born in late March.
Masaki McLellan said he applied for the account on July 6, but was initially rejected. However, after calling the Trump Account hotline, the account was reactivated, and he was told he'd see the money in 10 days.
Now, the new dad said he was told the money would take four weeks to be deposited into the account. Kristina McLellan said she was disappointed with how long it took to fund her daughter's account.
The parents have already started a 529 college savings plan and a custodial brokerage account for their child. The Trump Account is the third investment account in Maya's name.
"We definitely want to give her options for her future and make sure she can choose what she wants to do," said McLellan, a studio director for a local news station. The Treasury Department said the McLellans' case is unusual.
The department said that the lag between opening an account and receiving the seed fund constitutes "standard processing time, like receiving a tax refund," and that most parents are waiting only one to two days. A spokesperson said that the department likes to give parents a conservative estimate, such as the McLellans being told they would have to wait four weeks.
"Trump Accounts level the playing field by allowing every parent to invest in their children’s future, not just wealthy families with trust funds," the department said.
