Trump Accounts debuted on July 4 as part of America's 250th birthday. Eligible newborns receive a one-time, taxpayer-funded $1,000 seed deposit, which is automatically invested in an S&P 500 index fund. American children born between January 1, 2025, and December 31, 2028, are eligible for the account, which will be in their name and held by the parent until they turn 18.
Millions of families have already registered.
Kevin Freeman is an economist and investment strategist who is host of “Pirate Money” program on American Family Radio (AFR). He spoke about the accounts on AFR's "Jenna Ellis in the Morning" program, saying he supports the initiative.
He views it as a creative way to "prime the pump," narrow the wealth gap, and introduce average Americans to the free-market investment system early in life.
"A $1,000 put in when you're very young can turn out to be millions of dollars later in life. So, I think it's a very good program," Freeman says.
He added that is difficult for people to set aside $1,000 when they have a new baby. This would be, he said, a jumpstart program.
Freeman's "main objection to the program" is that it only allows you to invest in the standard index funds with the major index providers. That, he said, creates another economic problem.
"What about biblically responsible investors?" asks Freeman. "They're being shut out of this."
At one point in the segment, the discussion touched on the risk of so-called "birth tourism," where non-citizens exploit birthright citizenship to claim the $1,000.
Freeman urged Congress to redefine the Fourteenth Amendment to close this loophole.
"Congress can close the loophole right now by defining what 'subject to the jurisdiction thereof' means in the Fourteenth Amendment," says Freeman. "And they should define it to exclude people who are here illegally."
This summer, the Supreme Court ruled against an executive order from Trump limiting birthright citizenship. According to SCOTUSblog, he is looking to get the nation’s highest court to rehear the case.
