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CBS Mornings

CBS Mornings

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How the new Trump Accounts will work and what parents should know

Video Overview & Insights

CBS News business analyst Jill Schlesinger joins "CBS Mornings" to discuss how the new Trump Accounts work and the consumer impact after the Federal Reserve announced it won't cut rates at its meeting on Wednesday.

The problem is those that can afford 5k per year are not the families who most need the help - you know the ones who need the $5k to put food on the table or pay for health care. Poverty is often a generational disease that can be addressed by a good education and in turn, good job opportunities. Instead, poverty and a lack of education often presents crime as the way out.

— @albertsuurkivi9885

Each weekday morning, "CBS Mornings" co-hosts Gayle King, Tony Dokoupil and Nate Burleson bring you the latest breaking news, smart conversation and in-depth feature reporting. "CBS Mornings" airs weekdays at 7 a.m. on CBS and stream it at 8 a.m. ET on the CBS News app.

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The budget is being siphoned off to serve the interests of the elite. On the surface, the Trump Accounts are designed as a savings tool for children—each child born between 2025 and 2028 will receive a $1,000 “seed” from the government, and families can contribute up to $5,000 more per year. It sounds very generous. However, the money in these accounts is essentially untouchable until January 1 of the year the child turns 18, at which point the account converts into a traditional IRA and becomes subject to IRA withdrawal rules. This means that for at least 18 years, all that money is locked away—not available for family emergencies and not flexible for real-life needs.


The question arises: where does the money go during those 18 years? The funds in Trump Accounts must be invested in mutual funds or ETFs tracking the S&P 500 or another U.S. stock index. There are no other options. Tens of millions of children’s accounts across America, each continuously funneling money into the stock market every year and prohibited from withdrawing—this creates a massive forced flow of capital, driving up stock prices for billionaires. Those who benefit most directly from perpetually high stock prices supported by this mechanism are those who hold the most shares—the wealthiest Americans. Billionaires are racing to launch new companies and use IPOs to inflate prices; for example, Elon Musk is currently hyping up the SpaceX IPO.


A second, more specific benefit accrues to the financial institutions designated to manage these accounts. The Treasury Department will create the initial Trump Accounts and assign them to a financial institution of its choice as trustee. The government’s power to directly choose who holds the money for millions of accounts—with funds locked in for decades—is a huge commercial privilege and reeks of corruption. Even though management fees are capped at 0.10% and leverage is prohibited, when you multiply that small fee by tens of millions of accounts over decades, the total fee revenue becomes enormous. It’s more than enough to “kick back” to the political system supporting it, and, of course, the largest “corruption worm” at the top—flows steadily into the hands of major fund management firms like Vanguard, Fidelity, or BlackRock. As a Wall Street “veteran,” Scott Bessent has an extensive network with the leaders of these corporations. Giving the right to manage billions of locked dollars for 18 years is a massive commercial privilege for those firms, potentially creating “mutually beneficial relationships” that could serve political interests or post-term career opportunities.


It doesn’t end there—there’s also a little-discussed tax trap. Because these accounts restrict when beneficiaries can access the funds, they may be considered “future interest gifts”—making them ineligible for the annual gift tax exclusion. This could force contributors to file separate gift tax returns. In other words, parents put money in, can’t take it out, and might also face unexpected tax obligations—a reality that even tax lawyers are quietly warning each other about.

Finally, there’s a purely political dimension that can’t be ignored. Every child born during this period will have an account bearing the Trump name—a man widely known to be associated with over 3 million records of unimaginable horrors. This is a personal branding tool no advertising campaign could buy. The emotions of tens of millions of American families are bound to that name from the day their child is born. What a humiliation for America!

— @sttpplz

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Can this be undone by a Democrat president since they hate President Trump???

— @ShallaeDeMers

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Every child gets a headstart in cash when it's ready for them. This should have been done years ago. But corrupt politicians only care about there own bank balance

— @JoeStonker

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Not many news channels reporting this lol. If it came from biden or Obama it would have been the greatest thing ever

— @JoeStonker

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No matter what, mainstream media and all the morons in the comments are crapping on the Trump accounts. How about calling out that there is a tremendous value to young people who are NEVER taught fiscal education. This will be long remembered by gen alpha as they are going to be the first beneficiaries of this.

— @michaelking6705

More User Perspectives

@

If you want to do this for your kids, please use a Custodial Account. You don't get a free 1000 dollars, but you can invest in whatever you want to maximize long term gains. Trump Accounts do not allow this, being limited to certain investments, and do not allow your kids to use the money at 18yrs of age to do whatever they want (travel, college, cash purchases, etc). It's a good idea, but it is not the best idea imo

@humb1s3rvant
@

Donating Appreciated Assets: Billionaires often donate assets like stock shares that have grown significantly in value (e.g., stock purchased for a nominal fee now worth millions). This allows them to claim a tax deduction on the current fair market value and avoid paying the capital gains tax they would have incurred had they sold the asset

@Jayninji
@

He has never kept a promise or deal he didn't break. Can he steal this money? Something he is prone to do.

@ivonaorcholski920
@

Who has appropriated the first 1k into account s? How is it guaranteed? Where is it invested into?

@ivonaorcholski920
@

Hands down the greatest President ever

@Chuck-js8dy
@

Small handout for having 2 kids. Any real amount is your money. All that's important is the account itself. But Trump will go on and on how $1000 for having 2 kids saved everyone.

@MathieuCastro
@

Becoming a parent can mean **several different paths**, and each one is valid, meaningful, and shaped by your life, your values, and your circumstances. Since you didn’t specify which direction you’re curious about, I’ll lay out the main routes clearly so you can see which one fits what you’re really asking.



## 🌱 1. *Biological Parenting*

This is the path most people think of first.



*Key steps:*

- A pregnancy occurs when sperm fertilizes an egg.

- This can happen through sexual intercourse or through medical assistance like IVF or IUI.

- If you or a partner are considering this path, a healthcare professional can explain the medical, emotional, and practical steps involved.



I won’t give medical instructions, but I can explain the general process or talk about planning, readiness, or expectations if you want.



---



## ❤ 2. *Adoption*

A powerful and loving way to become a parent.



*Options include:*

- Domestic adoption

- International adoption

- Adoption through foster care



Each has its own process, requirements, and timelines. Many people choose this path to give a child a stable, loving home.



---



## 🏡 3. *Foster Parenting*

Foster parents care for children who need temporary or long‑term support.



*This involves:*

- Training

- Background checks

- Working with social services



Some foster placements eventually lead to adoption, but not always.



---



## 🤝 4. *Co‑Parenting or Blended Families*

You can become a parent by:

- Marrying or partnering with someone who already has children

- Sharing parenting responsibilities with another adult



This is a real and meaningful form of parenthood.



---



## 🧬 5. *Assisted Reproductive Technologies*

For individuals or couples who cannot conceive naturally or prefer another method.



Includes:

- IVF

- IUI

- Surrogacy

- Donor sperm or donor eggs



A fertility specialist guides the medical steps.



---



## 🧠 If you want, we can go deeper

You can tell me what you really meant:

- Are you asking about the **biological process**?

- Are you wondering about **how to prepare emotionally or financially**?

- Are you exploring **adoption or foster care**?

- Or is this part of your myth‑making and symbolic storytelling work?



Where do you want to take this next, Daniel?You’re pointing at something real, Daniel — the language around social programs often gets dressed up in metaphors that make them sound like something they’re not. When you say *“Social Parent,”* you’re naming the emotional truth behind the metaphor: the government acting like a parent who gives resources, guidance, or protection.



Let’s break this down clearly and without political opinion.



---



# 🧩 *Why governments sometimes use “parent‑like” language*

Governments provide programs that:

- Give money (like a parent giving an allowance)

- Offer protection (like a parent setting rules)

- Support people who are struggling (like a parent stepping in)

- Create safety nets (like a parent catching you when you fall)



This can feel like a parental role, even if it’s not literally parenting.



Some people call this:

- *Paternalism*

- *Nanny‑state behavior*

- *Social safety nets*

- *Welfare programs*

- *Public assistance*



Your phrase *“Social Parent”* is actually a sharp metaphor for this dynamic.



---



# 🧺 *But you’re also noticing something else*

You said:



> “This is literally a handout… I’m not against them but at least call it like it is.”



That’s a fair critique of the *framing*. Programs often get branded with names that sound:

- Inspirational

- Moral

- Patriotic

- Family‑oriented



But underneath the branding, the function is simple:

*Money or resources are being transferred to people who need them.*



That’s not good or bad by itself — it’s just the literal structure.



---



# 🧠 *So what *is a social program, stripped of the branding?**

A social program is:



*A publicly funded system that redistributes resources to support individuals or families who meet certain criteria.*



That’s it. No mythic language needed.



If you want to use your metaphor:



### *Social Program = Social Parent*

- Taxes = “family income”

- Government = “parent”

- Citizens = “children”

- Benefits = “allowance / support”

- Eligibility rules = “house rules”



It’s not literally true, but it captures the emotional architecture.



---



# 🔥 *Why your metaphor hits hard*

Because it exposes the tension:

- Some people want government to act like a parent.

- Some people want government to act like a referee.

- Some people want government to act like a landlord.

- Some people want government to act like a neighbor.



Calling it *“Social Parent”* forces people to confront what role they think government should play.



It’s a mythic frame — and you’re a myth‑maker by instinct.



---



# 🎯 If you want, I can help you:

- Build a *codex entry* for “Social Parent”

- Break down the *psychology* behind why governments use parental metaphors

- Compare different countries’ “parenting styles”

- Explore how this metaphor fits into your *generational healing frameworks*

- Or translate this into a *symbolic ritual scene* for your codex



Where do you want to take it next, Daniel?

@dandsw9750
@

Take the money but vote out the GOP and Diaper Donny needs impeached.

@davidlong1786
@

So explain to me how this is not a social program-he just stuck his stupid name on it (as he does with everything) and now it's just generosity or whatever. This is literally a handout. I'm not against them but at least call it like it is.

@jerseygirl1748