Overview
- Treasury Secretary Scott Bessent is courting philanthropists, companies and governors through a “50 State Challenge” to boost funding for the new child investment accounts.
- Michael and Susan Dell pledged $6.25 billion targeting lower‑income ZIP codes and Ray Dalio committed $75 million for Connecticut children, while firms including Visa, Mastercard, Uber, Charter and BlackRock have signaled support.
- BlackRock and BNY said they would match the government’s $1,000 deposit for employees’ children, and Bessent says roughly 20 states are weighing their own top-ups.
- Key rules include a $1,000 federal seed for births from 2025–2028, annual contribution limits of up to $5,000 per child, potential employer pre‑tax contributions up to $2,500, and investments restricted to low‑cost U.S. equity index funds until age 18.
- Enrollment is slated to open via IRS Form 4547 or an online portal with contributions expected to begin around July 4, 2026, while the IRS finalizes tax treatment and experts warn uptake may be modest given a roughly $15 billion budget estimate.