‘Take the free money’: Durham launches plan to boost savings for kids 10 & under
Speaking to a packed auditorium, Durham Mayor Leo Williams told dozens of children the city believes in financially investing in their futures.
“I believe that it’s really important for your parents to have all the things that they need to make life really good for you,” he told students at Murray-Massenburg Elementary School on Friday afternoon.
Joined by City Council member Carl Rist and Invest America Foundation founder Brad Gerstner, the mayor officially launched “Invest America Durham.” The initiative aims to ensure every Durham child age 10 and younger starts life with a “Trump Account,” a new type of individual retirement asset established under the federal Working Families Tax Cuts.
Gerstner’s Invest America Foundation is promoting the Trump Accounts and told the crowd the idea was inspired by President Abraham Lincoln.
“He said the most important right of Americans is the right to rise, the right to be able to climb up the economic ladder, the right to economic mobility,” Gerstner said. “But today communities feel left out and left behind, like they can’t get up the economic ladder, like the American Dream is no longer real anymore.”
What is a Trump Account?
Officially known as 530A Accounts, Trump Accounts allow parents, guardians and authorized individuals to establish long-term investment vehicles for children under 18. Unlike traditional 529 plans designed for education, these accounts focus on building lifelong wealth and economic mobility.
Under federal guidelines, key elements of the program include:
- $1,000 Seed Deposit: Available for children born between Jan. 1, 2025 and Dec. 31, 2028, funded by the U.S. Treasury.
- $250 Seed Deposit: Available for most children born between 2016 and 2025, funded by the Michael & Susan Dell Foundation.
- Funds are invested in the S&P 500, giving kids a stake in major companies like Apple, Microsoft and Tesla.
- Families and employers can contribute up to $5,000 annually, though contributions are made without federal tax deductions.
“I’ll be honest with you, it’s unexpected this is coming from this (Trump) administration,” Rist said. “At the same time, politics is the art of the possible.”
Even if parents choose not to invest in the Trump Accounts, Rist said it is a good idea to “take the $1,000 anyway.”
“Every financial adviser would say, take the free money,” Rist said.
In North Carolina, 1.3 million children, ages 2 to 8, are eligible for the $250. As of May, over 200,000 accounts have been claimed in the state, with 51,000 of those by children qualifying for the $1,000 grant, according to Invest America.
$500 to each Murray-Massenburg student
The launch event held special significance for the 700 students at Murray-Massenburg Elementary, a Title I school.
Gerstner and Williams announced that all students at the school would be signed up for accounts with an initial contribution of $500. This includes the $250 federal/philanthropic base plus an additional $250 personal donation from Gerstner for every student.
While the federal government provides the foundation, Williams is launching a local effort to amplify the impact. The city hopes to raise $9 million in private donations to provide a $250 local match for every Durham child who opens a Trump Account. There are approximately 36,000 eligible children in Durham.
“Let me very clear, I don’t care whose name is before the word ‘account,’” Williams said. “What matters to me ... is that every child in Durham does not have to continue to same trajectory of struggling to put food on their table, a roof over their heads.”
The Trump Accounts will officially launch on Independence Day.