Exclusive: Bessent makes sweeping case for Trump Accounts
Add Axios as your preferred source to
see more of our stories on Google.
Treasury Secretary Scott Bessent told Axios co-founder Mike Allen on "The Axios Show" that Trump Accounts will be the "most important benefit for young people since the GI Bill."
Why it matters: The Trump administration is making a sweeping bet that giving kids an early stake in the stock market can help a generation build wealth.
Driving the news: Treasury this week automatically created Trump Accounts for more than 60 million children, bringing the program to a scale unlike previous U.S. child savings efforts.
- Bessent said in the interview in the Treasury Building that about 8 million people had already created accounts before automatic enrollment.
- Parents still have to claim the accounts: Eligible children won't receive the $1,000 federal contribution until they do so.
Yes, but: Bessent's GI Bill comparison sets a high bar. That program helped millions of World War II veterans pay for education and training and buy homes.
- How much wealth Trump Accounts ultimately generate will depend on investment returns and additional contributions.
- Higher-income families have more money to contribute, meaning their kids could end up with much larger balances.
What they're saying: Bessent said the accounts could bring millions of new families into financial markets.
- Bessent compared the lack of access to a "food desert," noting that families struggling to cover an unexpected expense are unlikely to open a brokerage account and start investing.
- "We had financial service deserts," Bessent said. "By seeding these — by creating these accounts — we are opening this up."
How it works: Trump Accounts are investment accounts for children under 18.
- The government contributes $1,000 for children born during Trump's second term. Families, employers and others can add more.
- More than 50 companies, including JPMorgan Chase, BlackRock, Nvidia and Uber, have committed to contribute to accounts for employees' children. Employers can put in up to $2,500 a year.
- The money goes into low-cost funds tracking a broad U.S. stock index. Investment gains aren't taxed while the money remains in the account.
What to watch: Bessent expects Trump Accounts to "become a fringe benefit for many workers," similar to a 401(k) contribution.
- He also sees them changing philanthropy. "I think this can be a new kind of philanthropy," Bessent said. "If they want to help the children of America — this is the direct way to do it."
- Michael and Susan Dell have pledged more than $6 billion for accounts covering 25 million children under 10 in certain ZIP codes. Ray and Barbara Dalio pledged $75 million for more than 300,000 children in Connecticut.
Subscribe to "The Axios Show" on YouTube to watch the full episode when it's available.
