July 19, 2026
Fortune recently published an article co-authored by Jay L. Zagorsky, Associate Professor of Markets, Public Policy, and Law, discussing the federal government’s new “Trump Accounts,” which provide a $1,000 government contribution for babies born between 2025 and 2028.
The article explains that the funds are invested in a State Street S&P 500 index fund, meaning roughly one-fifth of each account is currently allocated to Nvidia, Apple, Microsoft, and Amazon. Zagorsky also questions the program’s projected returns, noting that while the official website estimates the initial $1,000 could grow to $243,000 by age 55, many financial planners view the assumed 10% annual returns as unrealistic. At a 4% annual return, he notes, the investment would grow to less than $9,000.
Despite these limitations, Zagorsky argues the accounts could help boost Americans’ saving rate, citing evidence from earlier Individual Development Account programs that increased long-term savings.
