(Yahoo! Finance) - JPMorgan Chase (JPM) and Bank of America (BAC) said Wednesday morning that they will match the US government’s $1,000 contribution to so-called Trump accounts for thousands of their US employees.
Trump accounts are a government program included in the One Big Beautiful Bill Act that the President signed into law last year. The tax-advantaged investment accounts are available for American children born between January 2025 and the end of December 2028 and come with a one-time $1,000 contribution from the US Treasury.
“JPMorganChase has demonstrated a long-term commitment to the financial health and well-being of all of our employees,” JPMorgan CEO Jamie Dimon said in a statement. “By matching this contribution, we’re making it easier for them to start saving early, invest wisely, and plan for their family’s financial future,” Dimon added.
"Our announcement to support and complement this new federal program for our teammates is one of the many ways we continue investing in our teammates," Bank of America said in a memo to employees about the move.
The country's two largest banks join a number of major US companies that have already announced plans to match the federal government’s $1,000 contribution to the Trump accounts for their employees, including the Bank of New York Mellon (BK), BlackRock (BLK), Intel (INTC), Charles Schwab (SCHW), Dell Technologies (DELL), Robinhood (HOOD), SoFi (SOFI), Charter Communications (CHTR) and Chime Financial (CHYM).
Billionaire Michael Dell, founder of the company that shares his name, is the most notable individual backer of Trump's plan, announcing a $6.25 billion gift in December supplement the savings accounts for young children in low and middle income areas.
The move comes as JPMorgan, Bank of America and other major banks face the president's call for credit card issuers to cap credit card interest rates at 10% for one year.
While commending the administration for its affordability push, big bank executives and other large credit card issuers, including JPMorgan Chase and Bank of America, have pushed back on the one-year cap on credit card rates, saying such a price control would have unintended consequences for the US economy by cutting credit supply to US consumers.
It isn’t exactly clear how credit card companies can be forced to cap interest rates without Congress first passing legislation.
“We're all in for affordability,” Bank of America CEO Brian Moynihan told analysts earlier this month while presenting the argument for why limiting credit card interest rates would have adverse effects.
Such a move “would be an economic disaster," Dimon said last week at the Wolrd Econmic Forum in Davos, Switzerland.
By David Hollerith - Senior Reporter
