SEN DAVE McCORMICK: Trump Accounts give all Americans a stake in prosperity
Last week, my friend Senator John Fetterman and I stood on a court at the 6th Man Center — a Philadelphia Youth Basketball facility in North Philly — watching dozens of children crowd around their phones grinning. They weren’t watching a video or playing a game. They were looking for investment accounts in their own names — accounts that give them a real stake in America’s future and become available on July 4.
Parents can celebrate Independence Day knowing that their children are eligible for a Trump Account: a $1,000 Treasury seed for every child born between 2025 and 2028, and another $250 for children ten and under in lower-income communities, funded not by Washington but by philanthropy.
These accounts were created a year ago as part of President Trump’s Working Families Tax Cuts Act, for which I cast the deciding vote in the Senate. Alongside no tax on tips or overtime and new tax credits for school choice and childcare, these measures are a down payment on the American Dream. They are also proof that we can share American prosperity without sacrificing the free markets and individual liberty on which this country was founded.
Capitalism is the greatest engine of prosperity and human flourishing the world has ever known. No economic system has lifted more people out of poverty, rewarded more work and innovation, or created more opportunity for ordinary people to build better lives. But to preserve that system — and the prosperity it makes possible — more Americans must have a real stake in its success.
Today, too many Americans are helping build this country’s future without sharing meaningfully in its upside. Since the global financial crisis, the top one percent’s share of the nation’s wealth has climbed from about 27% to 32%. That same 1% now owns roughly half of all the stock in America; the bottom half of households owns about 1%. As artificial intelligence and other new technologies transform our economy, this trend will only worsen — it’s both indefensible and politically unsustainable.
For decades, Washington’s answer to this dilemma was always the same: stand up a new agency, build a bureaucracy to run it, and redistribute hard-earned money through a system riddled with waste and fraud. It deepened dependence on government, and still the American Dream slipped further out of reach.
The Working Families Tax Cuts Act — signed into law last July 4 — chose another road: not redistribution from above, but incentives for Americans to invest directly in one another. A $1,000 seed fund is the first rung of a ladder every American child can climb — and gives parents, family and friends, employers and philanthropists a vehicle to invest directly in the next generation.
That is the magic of tax-advantaged compounding: a $1,000 investment at birth, combined with just $10 added to the account each week, could grow to nearly $400,000 by the time that child reaches my age of 60.
Michael and Susan Dell have shown what private investment in the next generation can look like. Their $6.25 billion pledge — enough to seed accounts for 25 million children — is patriotism made concrete: private generosity expanding ownership, opportunity and a stake in America’s future for millions of children. Many wealthy and patriotic Americans are following suit.
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Across the country, 6 million children have been signed up, but more must follow, including the 1.4 million eligible kids in Pennsylvania.
But Trump Accounts are only one part of a larger effort to revitalize the American Dream on our nation’s 250th birthday. The Working Families Tax Cuts Act is also bringing more jobs, more investment and more opportunity to families across the country. The school-choice scholarship credit, for example, lets Americans direct their own dollars to a child’s education, so families can choose the school that best fits their child’s needs.
Abraham Lincoln called us to be dedicated to the unfinished work of liberty. That work continues in every generation. On July 4, as Trump Accounts launch nationwide, we will help make the American Dream more than just an inheritance of words for the next generation, but also a concrete stake in America’s promise. And they give the rest of us a chance to invest in the future of America’s next generation.
More will need to be done. But programs such as these — voluntary, guided by incentives, circumventing government bureaucracy and which provide opportunity, not entitlement — are an excellent starting point.
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