Newsom Touts Trump Accounts for California Families 😲

California Gov. Gavin Newsom, a Democrat and one of President Donald Trump's most persistent critics, on Friday urged California families to claim the federal $1,000 seed deposits available through Trump Accounts.

 

He called the newborn investment program one of the "really outstanding things this administration has done" at a San Francisco news conference marking 1 million claimed accounts in California's own child savings program.

Trump Accounts, created under Section 70204 of the One Big Beautiful Bill Act, provide a $1,000 federal contribution to a tax-advantaged investment account for every U.S. citizen child born between Jan. 1, 2025, and Dec. 31, 2028.

Parents, relatives, and employers can contribute, subject to a combined annual limit of $5,000, with the funds invested in low-cost stock index funds until the child turns 18.

Newsom appeared alongside his wife, Jennifer Siebel Newsom, San Francisco Treasurer Jose Cisneros, and venture capitalist Brad Gerstner, whose nonprofit, Invest America, helped design the accounts.

The governor told reporters the program deserved bipartisan credit and urged Californians to enroll regardless of party loyalty, according to the New York Post, singling out Sens. Ted Cruz, R-Texas, and Cory Booker, D-N.J., for promoting the initiative.

 

The comments contrasted with Newsom's running feud with the White House. His office has logged more than 40 lawsuits against the Trump administration and has spent recent weeks trading barbs over immigration enforcement in San Francisco.

Private money has flowed into the program.

Dell Technologies founder Michael Dell and his wife, Susan, committed $6.25 billion to fund $250 charitable deposits for up to 25 million children age 10 or younger in ZIP codes with median annual incomes below $150,000.

The semiconductor manufacturer Micron pledged $250 million, including community deposits for children in Sacramento and Santa Clara counties and a dollar-for-dollar employee match.

In February, San Francisco Mayor Daniel Lurie announced a $3.5 million anonymous gift to add $500 per baby born in the city this year.

Gerstner said Treasury plans to begin automatic account creation in October, ending the requirement that parents apply first.

Federal projections cited in state reporting estimate a single $1,000 deposit could grow to roughly $243,000 by age 55 with no further contributions.

Newsom paired his pitch for the federal program with CalKIDS, the California Kids Investment and Development Savings Program.

The program, which the state launched in 2022, automatically deposits $100 for every California newborn and up to $1,500 for low-income public school students.

His office said 1 million CalKIDS accounts have been claimed, with many more still unclaimed statewide.

The governor closed with a jab at branding, joking that had California called its own program "Newsom Accounts," it too would have drawn political attention.

Jim Thomas ✉

Jim Thomas is a writer based in Indiana. He holds a bachelor's degree in Political Science, a law degree from U.I.C. Law School, and has practiced law for more than 20 years.

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