On Wednesday, December 17th, billionaire investor Ray Dalio announced his support for the Trump administration’s initiative to create “Trump Accounts” for children in the United States. This initiative aims to provide funding for investment accounts for children in certain areas of Connecticut, with investment firm BlackRock also pledging to match employee contributions to these accounts.
The “Trump Account” initiative is based on the “Big and Beautiful Act,” where the U.S. Treasury Department will deposit $1,000 in starting funds into investment accounts for all children born between 2025 and 2028.
Ray Dalio, founder of the world’s largest hedge fund Bridgewater Associates, stated on Wednesday that he will be funding “Trump Accounts” for 300,000 children in Connecticut, donating $250 to each account.
“I and my wife Barbara firmly believe in the importance of equal opportunity,” Dalio wrote on Instagram on Wednesday. “I have been involved in the stock market since a young age, and it has changed my life.”
Dalio’s initiative is targeted towards children living in postal code areas with an average income of less than $150,000. According to CNBC’s analysis of Census Bureau data, approximately 87% of postal code areas in Connecticut meet this criterion.
BlackRock also announced on Wednesday that they would match government contributions for employees’ children’s “Trump Accounts,” with an initial injection of $1,000 into each account.
The U.S. government is urging wealthy donors and corporations from all 50 states to contribute to these tax-advantaged savings accounts. Benson announced the launch of the “Trump Account” website, detailing the program and listing companies like BlackRock Inc., Mastercard Inc., Visa Inc., Uber Technologies Inc., Bank of New York Mellon Corp., and Charter Communications as providing “generous support.” The website does not specify the extent of involvement of these companies.
“Ray has joined what we call the ’50-state challenge’ program,” Treasury Secretary Scott Bessent stated in a news conference on Wednesday. “We invite philanthropists from all states to collaborate with us in creating generational wealth for American children through ‘Trump Accounts.'”
On December 11th, Bank of New York Mellon announced that they would provide matching funds equal to the $1,000 initial government funding for eligible new-born children of U.S. employees.
Earlier this month, billionaire Michael Dell and his wife Susan announced a $6.25 billion donation to support older children who do not meet the federal government’s requirements for “Trump Accounts”.
These accounts offer tax advantages not as beneficial as similar savings tools like 529 plans, but they allow parents to receive additional contributions from employers, the government, and philanthropists. The funds must be invested in low-cost index funds primarily tracking U.S. companies and remain locked until the child turns 18. At that point, the funds will be transferred to an individual retirement account and subject to standard early withdrawal penalty rules, though certain expenses like education or first-time home purchases may be exempt from penalties.