Feb 5 (Reuters) – Citigroup will match the U.S. government’s initial $1,000 contribution to the proposed Trump Accounts for eligible employees’ families, the U.S. lender announced on Thursday.
Trump Accounts, created as part of President Donald Trump’s One Big Beautiful Bill Act and expected to be rolled out on July 4, will see the U.S. Treasury deposit $1,000 of seed money into investment accounts for all children born between 2025 and 2028 with a valid social security number.
Citi’s joins rivals Bank of America, Wells Fargo and JPMorgan Chase, who have all launched similar match programs.
The Citi Foundation is also commiting $5 million to create awareness of the program, encourage participation and provide enrollment support, especially for low-income families.
Trump has urged American businesses to contribute to employees’ family accounts. The president and his Republican Party have been seeking to address voters’ affordability concerns ahead of the November midterm elections.
The accounts have been pitched by backers as a long-term wealth-building tool to help children build savings early in life.
Supporters argue that starting investments at birth can improve economic mobility and give future workers a stronger chance to climb the economic ladder.
Critics, however, have flagged the risks of letting eighteen-year old adults freely access what could by then grow into a considerable sum of money.
(Reporting by Ateev Bhandari in Bengaluru and Tatiana Bautzer in New York; Editing by Alan Barona)
