Donald Trump has put it out there: he’s counting on Musk to make a donation to the new Trump Accounts. It would be a high-profile way to put some wind in the programme’s sails before it goes live on the 4th. And it makes sense; after all, with the $86 billion from that record-breaking IPO, Trump says you have your first trillionaire on your hands.
Trump has been open about the likelihood of it, though you won’t find a word of confirmation from the billionaire himself. “Well, I think that he will do that,” was his take in a Thursday interview, noting that other big names have already made their mark. A person in Musk’s orbit had nothing to add as of Thursday night.
Why it matters if Musk comes on board
There’s as much symbolism in a handover of some shares as there is in the money. After the kind of debut the company has had, any gift from one of the most followed founders in the world to a White House plan for kids’ investing is a statement in itself.
It gives the administration some cover and puts a spotlight on the whole thing in tech and finance circles. It tells the rest of the boardroom that being part of this is the right thing to do, for country and for business. You can see Corporate America trying to be in good standing with certain causes; a nod from Musk would only speed that up.
The ins and outs of the Trump Accounts
When the tax-advantaged accounts come out on July 4th, any U.S. citizen born in the 2025-2028 window will be handed a $1,000 to start with by the feds. The older ones can put in their own money, or have it done for them by family, a boss, or a charity.
You can even put in publicly traded stock, officials say. If it’s cash, it gets put to work in a no-frills fund that follows the S&P 500. Word is over six million have put down their name before we even get to launch day.
Some of the money is already here
Musk has yet to sign off on anything, but the writing is on the wall. This week you had Micron put up $250 million. Then there’s Michael Dell, who has put his name to a promise of $250 for 25 million of our children to get their feet wet in the market, especially those 10 and under who don’t qualify for the thousand-dollar put-in.
To put a number on things, here is where we stand:
– We go live on July 4th
– $1,000 from the government for 2025-2028 births
– $250 million from Micron
– 25 million kids at $250 apiece from Dell
– An $86 billion haul for the SpaceX IPO
These are the kind of names that show how the financial and corporate side of the country is in step with the president. Next week, you’ll have some from Nasdaq and the NYSE in the Oval Office to ring the bell for the occasion.
The politics of it
Trump will tell you he and Musk are on good terms these days, after they butted heads over a tax-and-spend bill last year that the latter felt was bad for the deficit. “I have a very good relationship with Elon. We had a little disagreement. He liked me, still does,” he put it.
Musk was in Trump’s corner for the 2024 run and has since been at the forefront of some efforts to pare down the federal government. They were even in the same room at a White House dinner for the Saudi Crown Prince in November, as Trump has it.
He even sent a note to Musk on the listing. “I said, ‘Congratulations, very good’.” But for all that, a public word on the stock has not come from Musk.
What to look for in the coming days
Now it’s a matter of follow-through. The accounts are going live on the 4th and how the corporations handle it will set the stage. A donation from Musk would be a clear line of support between the White House and one of the big dogs in tech.
Then there is the question of what it says to the competition. With Micron and Dell in the mix, if Musk makes a play, it may rattle some of the other tech heavyweights into doing the same. For anyone in the market or in policy, the next week will be telling.
