WASHINGTON–Treasury Secretary Scott Bessent was pressed during a hearing here for when community financial institutions, including credit unions, will be able to become authorized Trump Account providers.
The question was raised during a House Financial Services Committee hearing at which he gave the annual report for the Financial Stability Oversight Council (FSOC).
Under 2025’s H.R. 1, the tax-deferred Trump Accounts can be established for children under 18. Those born between 2025 and 2028 receive a $1,000 initial seed contribution from the Treasury, which is invested in U.S. equity index funds to build wealth for future use.
According to America’s Credit Unions, in response to a question from Rep. John Rose (R-TN) about when credit unions and other community financial institutions could participate, Bessent responded, “Initially there will be one master custodian for the accounts. So initially, these small banks will not be able to participate. Eventually the holders of the accounts will be able to migrate out to designated institutions. I think we are prepared for a flood of signups, and then they will go live on July 5, and the goal is the lowest possible fees on these index funds.”
Letter Sent to Hill
Prior to the hearing—Bessent will deliver the same report to the Senate today—America’s Credit Unions sent a letter to the Hill is said sought to highlight multiple credit union issues under the Treasury’s purview.
Before both committees, Bessent will deliver the Financial Stability Oversight Council’s annual report.
The Issues
According to America’s Credit Unions, the issues addressed in the letter include:
- Urging that credit unions are included as authorized providers of Trump Accounts created in H.R. 1, as the accounts fit with credit unions’ mission of helping members financially, and are subject to a rigorous supervision and compliance framework.
- Outlining the challenges in implementing the auto loan interest deduction provisions in H.R. 1, which must include regulatory clarity, operational feasibility, and balanced compliance expectations. America’s Credit Unions noted it submitted comments earlier this week outlining concerns and recommendations;
- Strong opposition to any credit card interest rate cap as well as to any interchange legislation it said would “harm consumers.”
- Recognition of the FSOC and NCUA noting in the report that the agency has authority under existing law to gain information from other regulators about vendors and doesn’t need additional authorities granted by Congress, validating the association’s opposition to granting the NCUA authority to examine third parties,
- Ongoing support for the Community Development Financial Institutions (CDFI) Fund, including prioritizing timely, predictable deployment of CDFI resources and avoiding process changes that slow awards or reduce impact.
