Billionaire Ray Dalio joins push to fund Trump Accounts, pledging $75 million to Connecticut kids

“I have been fortunate to live the American Dream. At an early age I was exposed to the stock market, and it changed my life,” Ray Dalio said in a statement, adding that he sees the accounts as putting children on a path toward financial independence.

The Dalios commitment, which will total at least $75 million, follows the $6.25 billion pledge from billionaires Michael and Susan Dell earlier in December. The Dells promised to invest $250 in the accounts of 25 million children 10 and under who live in ZIP codes across the country that also have that median income.

The new investment accounts were created as part of President Donald Trump’s tax and spending legislation, passed over the summer. Under the new law, the U.S. Department of the Treasury will deposit $1,000 into the investment accounts of children born during Trump's second term.

The Treasury has not yet launched the new accounts.

“Starting on July 4th, our nation’s 250th anniversary, parents, family members, employers and friends will be able to contribute up to $5,000 to each Trump Account each year,” Bessent said Wednesday.

Brad Gerstner, a venture capitalist, who championed the accounts, said the Treasury will create an account for every child in the U.S. who has a Social Security number but private companies will eventually administer the accounts. Parents or guardians will have to claim the accounts on behalf of their children. For children born before Trump came to office and who don't qualify for the funds from the Dells and the Dalios, their families can open and fund their own Trump Account if they choose.

Money in the accounts must be invested in an index fund that tracks the overall stock market. When the children turn 18, they can withdraw the funds to put toward their education, to buy a home or to start a business.

Bessent said employers, family members and philanthropists can put funds into the accounts and that the administration hopes states will also eventually set up programs to invest in the accounts. Companies including Visa and BlackRock have also pledged to contribute in some way to the accounts of their employees' children.

Jane Waldfogel, a professor at the Columbia University School of Social Work, said ideally, governments would provide benefits that help families with children afford immediate expenses and programs like the Trump Accounts that help families save for a child's future.

“The problem that many scholars have tried to address and many politicians have tried to address with these child savings accounts is that low-income families and even middle-income families struggle to put aside money and save money for their children’s future,” said Waldfogel, who recently published a book about child benefits.

Without regular government contributions targeted toward poorer families, Waldfogel does not expect the accounts to decrease economic inequality as affluent families will take advantage of them but other families will not.

Steven Durlauf, a professor at the University of Chicago’s Harris School of Public Policy, said he expects the accounts to make a very modest contribution toward the resources of young adults. His research has examined what factors impact the success of children and he said improving early childhood education and rectifying racial and economic segregation at schools and in neighborhoods would do more to give children the skills and opportunities they need to be productive.

Durlauf also said as much as the philanthropy of the affluent is admirable, he thinks it should remain out of politics and controversies.

“This is integrating the wealthy into the support of particular government programs that are associated with particular political figures," he said. "And that strikes me as extraordinarily dangerous.”

The Dalios have granted tens of millions to Connecticut public schools over the years, though a $100 million initiative launched in 2019 that would have involved matching public funds fell apart after state lawmakers raised questions over transparency. Altogether, the Dalios say they've given $7 billion through their philanthropy, which has focused on education, support for economic advancement and ocean research and education.

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