US Treasury Secretary Scott Bessent is coming to Southern California Friday to speak about the Trump administration’s economic security doctrine while trumpeting the newly launched “Trump Accounts,” which will allow parents and guardians to save money for their kids.
Bessent will address the 2026 Reagan National Economic Forum in Simi Valley, after President Trump’s latest round of negotiations with China and finance meetings with G7 countries.
He will then make a stop in Westlake Village as part of the “Trump Accounts Tour,” having fireside chats with celebrities like actor Kelsey Grammer and politicians such as Republican Congressman Vince Fong.
Bessent will also meet with local business leaders to discuss the impact of the Working Families Tax Cuts Act, which includes “Trump Accounts.”
The app for the accounts — which lets parents sock away cash for things like their children’s educations or to make a down payment on a home after they turn 18 — launched Thursday.
“Trump Accounts, made possible through the Working Families Tax Cuts, reflect a commitment to expanding opportunity, strengthening financial security, and ensuring that every American child begins life with a foundation for building wealth and financial literacy,” the treasury secretary’s office said in its announcement.
Parents, family members and friends can contribute up to $5,000 total per year to a Trump Account, and up to half of that can come from pre-tax income. Any contributions from the government or charities don’t count toward the $5,000.
Anyone with a child 18 or younger who is a US citizen with a Social Security number can open a Trump Account. The federal government will contribute $1,000 in seed money per account — but only for kids born from Jan. 1, 2025, to Dec. 31, 2028.
The annual contribution caps will rise in keeping with inflation.
Employers can contribute up to $2,500 per year for the child of an employee or an employee’s dependent that counts toward the $5,000 annual cap, but it won’t be considered taxable income. Employers can also let workers direct up to $2,500 of their pre-tax salaries to Trump Accounts.
“It’s gonna be very similar to a 401(k) match in the sense that this is just free money,” Nathan Goldman, a member of the American Accounting Association and professor at North Carolina State University, told The California Post.
Funds in the accounts can only be invested in low-cost mutual funds or exchange-traded funds, also known as ETFs, which mostly consist of US stocks and bonds.