AFN’s perspective was recently featured in The Chronicle of Philanthropy in an article exploring the emergence of Trump Accounts and philanthropy’s role in shaping their impact.
Read the article on The Chronicle’s site (subscription required)
“The new policy echoes decades of donor-backed work — but philanthropy is divided on its potential.
“Trump Accounts” will put $1,000 into an investment account for every baby born in the next four years.
…In the new tax-and-spending law passed in July, Congress tucked in a plan to put $1,000 into an investment account for every baby born in the next four years. The new accounts echo ideas like baby bonds and child savings accounts, which Ford, Mott, and other foundations have been testing for years as they seek ways to improve college access and help low and middle-income families build wealth.
…But not everyone is on board. Some philanthropic supporters of policies that aim to boost wealth and opportunity are hoping they can encourage changes to make the new program more effective. Others say the Trump approach misses the point.
“We know from years in the field that any savings vehicle that is predominantly reliant on individual savings to build wealth isn’t going to be enough,” says Leah Mayor, senior director for Asset Funders Network, a group of foundations and financial institutions supporting economic mobility. “Pairing that with strengthening the safety net, strengthening benefits, pairing it with other interventions, like baby bonds, is also part of the goal.”
