The Super Bowl is one of the most watched events in the world. While there are many football fans out there, even more folks watch the Game for the Commercials. Between Matthew McConaughey and Bradley Cooper, Pepsi and Dunkin’, one in particular stood out for us: Invest America.
The prominently placed Invest America ad is a powerful statement about a significant wealth building opportunity that will be available on or about July 1, 2026 for babies born between January 1, 2025 and December 31, 2028. While commonly known as Trump Accounts, this initiative is also recognized as Section 530A Accounts, referring to the Section of the Internal Revenue Code pursuant to which the Accounts are created.
According to the US Treasury, more than one million people have already claimed Accounts via their tax filings. Once they are available, the Accounts will bring a new world of financial security to eligible children nationwide.
Thanks to a pilot program, children with Social Security numbers who are claimed as dependents on their parent’s tax returns may receive a $1,000 federally funded contribution to jumpstart these Accounts. Although not eligible for the federal contribution, Accounts may also be established for eligible children under the age of 18 to accept up to $5,000 in annual contributions from parents, grandparents, friends, employers, and charities, among others. We note that employers may contribute up to $2,500 annually tax-free to their employees, although the contribution will count towards the $5,000 limit.
While administrative and investment details have yet to be finalized, support from individuals, philanthropies and employers is unprecedented. For example, Michael and Susan Dell pledged $250 to the Accounts of more than 25 million children nationwide, a pledge totaling $6.25 billion. This gift is one of the largest single charitable bequests in the last 25 years and expands the impact of these Accounts to more children. Ray and Barbara Dalio joined the Dells with a contribution of $250 to the Accounts for 300,000 children in certain Zip Codes in their home state of Connecticut, a package valued at approximately $75 million.
Importantly, the Mayor of the City of San Francisco just announced an anonymous $3.5 million gift, which is expected to cover a $500 contribution to Accounts of eligible children born in San Francisco in 2026. This follows the announcement by Congressman Vince Fong (R-CA) of a $500,000 pledge from the Anand Foundation, which will match donations to newborns of mothers enrolled in certain rehabilitation programs in Kern County, California.
Even more notably, large employers have embraced the initiative by committing to contribute to these Accounts as a tax-free employee benefit. Among others, Bank of America, BlackRock, BNY, Charles Schwab, Charter Communications, Chipotle, Coinbase, Comcast, Goldman Sachs, ICI, IBM, Intel, JP Morgan, Mastercard, Nvidia, Robinhood, SoFi Technologies, State Street, Uber, Visa and Wells Fargo will match contributions to accounts for employees’ children. As the Accounts take hold, we expect more employers and other entities to follow suit.
The outpouring of corporate and philanthropic support is a great endorsement for these savings initiatives. For us it raises potential both opportunities for State-run investment and savings programs, and a few questions. First, what role might States provide in the future for these Accounts? And second, how can State-run programs similarly engage with corporate and philanthropic interests? Regarding State involvement, we note that in his State of the State address last week, the Governor of Oklahoma proposed an additional $250 for each Oklahoma newborn, and in December the Lieutenant Governor of Texas proposed the “New Little Texan Savings Fund” that would add an additional $1,000 to the Accounts of all Texan newborns.
Perhaps the biggest benefit of the Accounts is the road to a future with financial security by enabling a child to participate in long-term growth potential. As a tool towards wealth building and empowerment, this initiative will provide a meaningful way for children to dream about the opportunities to come.
Returning to the Invest America ad itself, we note the powerful opening and close: “Dear America … sign me up.”