Trump Accounts launch July 4, giving newborns $1,000. Heres what to know

WASHINGTON — On Saturday, President Donald Trump’s administration plans to launch Trump Accounts, tying the 250th anniversary of the signing of the Declaration of Independence to an effort to boost financial independence for American kids.Under the program, parents can open investment accounts for any child born during Trump’s second term and automatically receive $1,000 from the government.Accounts can be opened on behalf of older children — as long as they don’t turn 18 before the end of the calendar year — but they will not receive the $1,000.That money — and anything else deposited by employers, philanthropies and relatives — is invested in the stock market by private firms.

Children can’t access the money until they turn 18, and then only for specific purposes, like paying for a home or school.The accounts already have gotten a boost from billionaires beyond the $1,000 from the government.Michael Dell, the founder of Dell Technologies, and his wife, Susan, pledged to give $6.25 billion to the accounts of some kids who don’t qualify for the government’s $1,000.

On Wednesday, Trump announced on Truth Social that Sanjay Mehrotra, CEO of Micron Technology, would give $250 million.The donation “will help jumpstart the American Dream for these fabulous children as we celebrate America’s 250th Anniversary! This MASSIVE Investment will help MILLIONS of American children and families get a strong start in life, and give them REAL Financial Security,” wrote Trump, a Republican.Trump Accounts launch amid widespread affordability concerns.The Federal Reserve’s preferred inflation gauge rose to a new three-year high in May as gas prices peaked during the war with Iran. Food prices have risen since Trump’s inauguration, too.

Meanwhile, many Americans are bracing for changes to social safety net programs like Medicaid and the Supplemental Nutrition Assistance Program, or SNAP, which were cut under the same legislation that create...