Are You Waiting for Your Child's Trump Account Deposit? Here's What We Know
· Telemundo McAllen (KTLM)
U.S. President Donald Trump claims that Trump Accounts could lift children out of poverty and give more Americans the chance to benefit from stock market investments. Some parents say they are still waiting for the money. The president plans to speak this Wednesday at a high school in Georgia to promote the investment accounts, which offer $1,000 in seed capital to every child born during his second term. The accounts were activated on July 4, two days before Trump rang the opening bells of the New York Stock Exchange and Nasdaq from the Oval Office. The tax-advantaged accounts, created last year through Trump's signature tax cut and spending bill, can be opened for any child under 18. The Treasury Department estimates there are 6.5 million registrations for Trump Accounts, of which 1.5 million are eligible for the $1,000 seed capital for babies born between 2025 and 2028. Most of those families receive their $1,000 within one or two days, the Treasury Department indicated. Program advocates argue that it is an opportunity for more Americans to participate in the stock market. They hope this will curb the rising popularity of democratic socialists, who seek to raise taxes on corporations and wealthy individuals to alleviate costs for low-income and middle-class Americans. Once Trump Accounts are set up, parents, relatives, friends, and employers can contribute to them. Some billionaires have also pledged philanthropic contributions. The money is given to private firms that invest it in index funds, a type of mutual fund that tracks stock market performance. The money cannot be accessed until the child turns 18, and only for specific purposes, such as going to school, starting a business, or buying a home. Some parents were told the deposit could take four weeks. For babies born since Trump took office last year, $1,000 from the U.S. Treasury is supposed to kickstart the accounts. While some parents report having received the money, others have said in interviews and on social media that they are still waiting for the accounts to receive the $1,000. Masaki and Kristina McLellan, first-time parents from Bergen County, New Jersey, said in an interview that they hesitated to enroll in the accounts because they feared it was a promotional stunt by the president. But the $1,000 incentive convinced the couple, whose daughter Maya was born in late March, to open an account anyway. Masaki McLellan noted that he applied for the account on July 6. Initially, the application was rejected, but the account was activated after he called the Trump Accounts help line. He was told he would see the money in the account in 10 days. Now, he claims he has been told it could take up to four weeks. Kristina McLellan expressed disappointment that it was taking so long to fund their daughter's account. However, the baby already has other investments being capitalized for her. Maya's parents have already started a 529 college savings plan and a custodial brokerage account for her. The Trump Account is the third investment account in the child's name. 'We definitely want to give her options for her future and ensure she can choose what she wants to do,' said McLellan, a news station study director, who will return from maternity leave next week. The Treasury Department emphasized that the McLellan case is unusual and stated that only a small fraction of applicants need customer support. The Treasury says most parents wait only one or two days. The Treasury Department indicated that the time between opening an account and receiving the seed capital constitutes a 'standard processing time, like receiving a tax refund,' and that the overwhelming majority of parents wait only one to two days. However, the department likes to give parents a conservative estimate of how long the money transfer might take, such as the estimate of up to four weeks given to the McLellans. '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 noted. The government also announced last month an initiative allowing child welfare agencies to open accounts on behalf of youth in foster care. 'With nearly 1 million registrations per month before launch, Trump Accounts have become the most popular and successful government-backed savings product in U.S. history,' the Treasury Department stated. Trump faces pressure over his handling of the economy. Trump's stop in Georgia comes as he and other Republicans face pressure in the midterm elections over his economic management. Only 33% of adults in the U.S. approve of the president's economic leadership, which is among the lowest ratings of his second term, according to a June poll by the AP and the NORC Center for Public Affairs Research. Trump promised to lower costs, but his tariffs and the war in Iran have instead contributed to rising prices. Trump Accounts are similar to 'baby bonds,' promoted by cities and states governed by Democrats aimed at reducing the wealth gap between low- and high-income children. However, unlike most baby bonds, which generally focus on children from disadvantaged backgrounds, Trump Accounts are available to families at all income levels. The program has faced criticism from those who say it does nothing to help families in the early years of a child's life, when children are most likely to experience poverty, homelessness, and hunger. And the Republican bill that created the program also cut funding for programs disproportionately used by children, including Medicaid and the Supplemental Nutrition Assistance Program. This story was translated from Spanish by an AP editor with the help of a generative artificial intelligence tool. An editor from Telemundo Digital reviewed the translation.
AI summary · Source: Telemundo McAllen (KTLM) →
