Trump Adviser Floats 'Trump Accounts' Plan With Dalio, Dell Backing
Proposal by potential Treasury pick Scott Bessent would give newborns $1,000 to invest, aiming to create a new generation of equity owners.
A top economic adviser to Donald Trump has outlined a proposal to create federally funded investment accounts for American children, a plan that has reportedly secured backing from billionaire investors Ray Dalio and Michael Dell.
Scott Bessent, a former Soros Fund Management executive widely seen as a leading candidate for Treasury Secretary in a potential second Trump administration, detailed the 'Trump Accounts' initiative, which aims to spur a new generation of investors with direct stakes in U.S. companies. The plan would provide a $1,000 deposit for each child born in the United States between 2025 and 2028.
Under the proposal, these funds would be earmarked for investment in American equities, creating a new, long-term source of capital for the domestic stock market. The initiative mirrors 'baby bond' concepts previously explored by policymakers as a tool to promote financial literacy and address wealth inequality from birth.
Adding significant weight to the proposal, Ray Dalio, the founder of the world's largest hedge fund, Bridgewater Associates, has committed to personally contribute to the program. According to reports, Dalio has pledged to donate an additional $250 to each of the first 300,000 accounts opened in Connecticut, his home state, as part of a national challenge to encourage private-sector contributions.
The involvement of Dalio is notable, as he has previously been a public critic of political polarization and its risks to capitalism. His backing, alongside that of Dell Technologies founder Michael Dell, signals a significant endorsement of the proposed policy from influential figures in the finance and technology sectors.
The idea of government-seeded savings accounts for children is not new, with various iterations proposed to encourage long-term savings and investment. The core economic argument is that such programs can create a powerful compounding effect over a lifetime, potentially narrowing the wealth gap and increasing overall market participation. By fostering a culture of ownership from a young age, proponents believe it could create millions of new retail investors with a vested interest in the performance of the U.S. economy.
While the announcement provides a glimpse into the economic platform being developed within Trump's circle, the 'Trump Accounts' remain a proposal contingent on the outcome of the presidential election. The plan, as reported by financial news outlets, represents a strategic effort to outline a forward-looking economic policy aimed at bolstering household wealth and directly linking a new generation's financial future to the performance of American enterprise.