First Focus on Children offered comments to Treasury Secretary Scott Bessent outlining changes required to make the 530A savings tool — also known as “Trump Accounts” — fairer and more efficient at promoting economic mobility.
An excerpt from the letter:
The renewed focus on savings tools like 530A “Trump accounts” signals an emerging understanding that assets — not just earnings — shape a family’s economic trajectory…As currently structured, 530A accounts may help some families save more, but unfortunately, the design is deeply flawed and regressive, primarily benefitting more affluent families rather than supporting millions of children lacking basic economic security. Since outcomes depend in part on existing family resources, those with more to contribute disproportionately see greater returns, while families starting with less experience smaller and slower gains and some children will be left behind completely. Without significant design improvements to the 530 accounts program, deep-rooted disparities in economic security will persist and grow.