Trump Account for babies: JPMorgan, Bank of America to match $1,000 contributions for eligible employees — what we know

JPMorgan Chase & Co and Bank of America Corp on Wednesday said in separate releases that the companies will match the US government’s $1,000 “Trump Account” contributions for eligible employees whose children were born between the beginning of last year and the end of 2028.

The two firms join several other corporations in announcing such a measure, with companies such as Visa Inc, Chime Financial Inc and BlackRock Inc also pledging to match the government’s Trump Account contributions, according to a CNBC report.

Bank of America also said it will allow eligible employees with children under the age of 18 to put money into Trump Accounts directly from their salary before tax is deducted, according to a memo sent to employees, Bloomberg reported separately.

Meanwhile, JPMorgan announced that the investment banking firm also granted a special award of $1,000 to eligible employees globally this year. The amount, which was deposited into their 401(k) accounts, was specifically rewarded to those workers who are earning less than $80,000 in total annual cash compensation.

What is a Trump Account?

US President Donald Trump introduced the accounts as part of his One Big Beautiful Bill Act, in which the government will offer a one-time amount of $1,000 each to children born between the start of 2025 and the end of 2028.

This money will specifically be placed into individual retirement accounts, where it is expected to be invested in US stock index funds and kept locked in until the child turns 18.

It is expected to be rolled out on 4 July this year, and credited to the investment accounts of children with a ​valid Social Security number. Supporters of the programme argue that starting investments at birth ‍can improve economic mobility and give future workers a stronger chance to climb the economic ‌ladder, Reuters said.

The program was partly the brainchild of hedge fund manager Brad Gerstner and is aimed at narrowing the US wealth gap by promoting long-term saving and investing from birth.

The initiative has drawn commitments from a growing list of wealthy individuals and public figures, ranging from billionaires such as Michael and Susan Dell and Ray Dalio to celebrities including rap artist Nicki Minaj, reflecting broad support across the business and entertainment communities, CNBC reported.