WASHINGTON — White House and Treasury Department officials are discussing whether to expand the Trump administration’s new investment accounts for American children to allow donations of individual company stock.
The accounts, formally known as Section 530A accounts and referred to by supporters as “Trump accounts,” are scheduled to begin accepting contributions on July 4, The New York Times reported. The program has already received billions of dollars in philanthropic commitments.
Under current rules, the accounts are limited to cash investments placed into diversified index funds. According to The New York Times, administration officials are now considering whether wealthy individuals could instead donate shares of their companies directly into the accounts.
The proposal has reportedly been championed by venture capitalist Brad Gerstner, founder of Altimeter Capital, who helped develop the 530A account initiative. Gerstner has discussed the idea with administration officials, The New York Times reported.
Contributions from Billionaires
If adopted, the change could allow billionaires such as Elon Musk or Jensen Huang to contribute stock from companies they control, including shares of Tesla, SpaceX or NVIDIA, according to the report.
The New York Times said supporters argue the move could provide children with long-term exposure to high-growth companies rather than relying solely on diversified index fund returns. The proposal could also create tax advantages for donors, who may be able to avoid capital gains taxes while receiving charitable deductions tied to the fair market value of donated shares.
The newspaper reported there has been increasing interest in the accounts among wealthy donors and corporations, citing discussions at the Milken Institute Global Conference. It also said the initiative aligns with a previous pledge by Michael Dell and Susan Dell to donate $6.25 billion to the program.
Ongoing Debate
According to The New York Times, Treasury Department officials have debated the risks of allowing direct stock contributions. Current restrictions requiring diversified index funds were designed to shield children’s accounts from volatility tied to individual stocks.
The report said changing the rules would likely require legislation amending the statute that established the accounts, although officials have also discussed whether Treasury guidance or an executive order could accomplish the change.
The New York Times reported officials are also weighing broader concerns, including whether today’s leading technology companies will remain dominant decades into the future and whether the accounts could effectively become long-term repositories for billions of dollars in tech company stock.
A Treasury Department spokesperson declined comment, according to The New York Times.
