(Quartz) - Billionaire investor Ray Dalio is the latest business executive to pledge cash for President Donald Trump's investment accounts for kids.
Treasury Secretary Scott Bessent announced on Wednesday that Dalio will be donating seed money for Connecticut kids under a new federal initiative to rally philanthropists around the program. The U.S. government will provide $1,000 for each account.
"Ray has made the first move, but we welcome other donors and foundations in Connecticut and across the country to join him in the 50 State Challenge," Bessent said at a press conference.
The administration also unveiled a website for the program, which is restricted to kids born during Trump's second term. Both Ray and his wife Barbara Dalio are listed as philanthropists with "more to come," the website said.
Dalio, who founded the Bridgewater Associates Investment Firm, said the couple planned to seed the investment accounts with an extra $250 for 300,000 kids in Connecticut. The funds will flow to children living in a zip code with median incomes below $150,000.
“At an early age, I was exposed to the stock market, and it changed my life," Dalio said in a statement. "By providing children with savings accounts that compound over time, we are providing them with early insights into financial literacy and a path towards financial independence."
Under the program, beneficiaries can withdraw the cash starting at age 18 under specific circumstances such as paying for college. They stand to gain full control over the money at age 30, and parents will be allowed to deposit up to $5,000 annually. Employers will be allowed to make contributions too. There's one catch: The money can only be invested in low-cost U.S. stock index funds.
The account functions similarly to a traditional individual retirement account, better known as an IRA. Children born after Dec. 31, 2024 and before Jan. 1, 2029 will qualify for an account.
Earlier this month, CEO Michael Dell of Dell Technologies and his wife Susan announced a donation of $6.25 billion for the initiative that will seed 25 million accounts with $250 a piece.
By Joseph Zeballos-Roig
