Expectations are growing that large sums of money will flow into U.S. stock markets as the American government fully activates "Trump Accounts," which provide investment seed money to newborns. With government support supplemented by donations from private companies, some forecast that about $20 billion (approximately 27 trillion won) in new funds could flow into the U.S. stock market in the second half of this year alone.
According to the U.S. Treasury Department and outlets including CNN and CNBC on Nov. 7, Trump Accounts officially began operating on Nov. 4. U.S. President Donald Trump announced the program's launch at a joint opening ceremony held by the New York Stock Exchange (NYSE) and Nasdaq, emphasizing that it is "a long-term investment program for the future of American children."
Trump Accounts are long-term investment accounts for American children under 18. In particular, the government provides $1,000 (approximately 1.5 million won) per account to newborn U.S. citizens born between Jan. 1 last year and Dec. 31, 2028. When a parent or legal guardian opens an account, the government deposits the initial investment.
According to the Treasury Department, about 6 million people have opened accounts so far, of which about 1.4 million are newborns eligible for government support. The rest operate accounts through voluntary contributions by parents or private donations.
These accounts can only be invested in ETFs and mutual funds that track major U.S. indexes, rather than individual stocks. The default investment product is State Street's S&P 500-tracking ETF, and the range of selectable products is set to expand in the future. Management fees are also capped at no more than 0.1% annually to minimize the burden of long-term investment.
Wall Street sees the program becoming a new supply-demand factor for U.S. stock markets. Wells Fargo expects more than about $19.5 billion (approximately 29.55 trillion won) to flow in through Trump Accounts in the second half of this year. In particular, analysts say that because the funds are concentrated in U.S. equity ETFs rather than diversified into bonds or overseas assets like retirement pensions, the effect of boosting the market centered on large-cap technology stocks will be significant.
Dell Pledges 9.5 Trillion Won as Companies Line Up; Musk Stays Silent
Participation by private companies is also spreading quickly. Michael Dell, founder and chairman of Dell Technologies, and his wife Susan Dell have decided to donate a total of $6.25 billion (approximately 9.5 trillion won) for children born before 2025 who are excluded from government support. About 25 million children will each receive $250 (approximately 370,000 won).
Semiconductor company Micron also decided to donate $250 million (approximately 379 billion won), while major companies including BlackRock, Intel, and JPMorgan Chase plan to participate by adding an amount equal to the government support to the accounts of their employees' children.
President Trump has also publicly urged Elon Musk, the world's richest person, to participate. In a recent CNBC interview, he cited the cases of Dell and Micron, saying, "I think Musk will donate too." However, Musk has yet to state any particular position. He has shown a cautious attitude toward charitable donations in the past, saying they are "very difficult to execute efficiently."
The White House is also emphasizing the long-term investment effect. The Council of Economic Advisers (CEA) estimated that, if the long-term average return of the U.S. stock market is applied, a child born in 2026 could see assets exceed about $300,000 (approximately 450 million won) at age 18 and more than $1 million (approximately 1.5 billion won) at age 28, provided that parents make additional annual contributions up to the limit on top of the government support.
However, some point out that this structure could instead widen wealth inequality. While the government's initial investment is the same for all children, parents can contribute up to $5,000 (approximately 7.58 million won) per year and employers up to $2,500 (approximately 3.79 million won), meaning that families with greater financial means can enjoy far larger benefits. There are concerns that, once long-term compounding effects are added, the wealth gap could widen further over time.
