President Donald Trump announced that the federal government has already deposited the first $1,000 in more than 500,000 “Trump Accounts,” a program designed so that American children, including certain children of immigrants, begin generating wealth from birth through investments in the stock market.

The announcement was made from the Oval Office of the White House, where Trump led the traditional ringing of the bell at the opening of the trading day accompanied by executives from the New York Stock Exchange (NYSE) and Nasdaq, a gesture with which he sought to highlight the collaboration between both financial institutions.

The information was published by the Reuters agency, which points out that the program is part of the administration's economic strategy to encourage savings and long-term investment among new generations.

How will “Trump Accounts” work?

The program is aimed at US citizens born between 2025 and 2028. Each minor will receive an initial deposit of $1,000, resources that will be automatically invested in a low-cost index fund with the aim of generating long-term returns.

When the beneficiaries turn 18, they will be able to take control of the account, withdraw the money or maintain the investment. Earnings will be subject to taxes upon withdrawal.

During the presentation, Trump assured that the initiative will allow thousands of families to begin building wealth from an early age.

“This program provides children born without economic resources with important financial assets from the beginning of their lives,” said the president.

The president also recommended not withdrawing resources early to take advantage of the potential growth of investments.

Companies support the initiative

Various American companies announced their support for the program through additional contributions or contribution schemes for children of their employees.

Among the participating companies, Visa, Dell, Comcast and Micron Technology stand out, the latter with the commitment to contribute $250 million to strengthen the “Trump Accounts.”

Republican Senator Ted Cruz, who participated in the presentation of the program, assured that the measure seeks to bring the financial market closer to new generations.

"The Trump Accounts aim to turn every child and every American into a capitalist. Each of our children will now own the largest manufacturing companies in our country," he declared.

Although proponents of the initiative maintain that it will boost financial education and long-term savings, some specialists have expressed reservations, considering that lower-income families may not have sufficient resources to make additional contributions and take full advantage of the program.

Curiously, this launch occurs just as the cost of living has become one of the main topics of the political debate heading into the midterm elections.