Assembly Republicans propose Wisconsin match for federal Trump Accounts

Assembly Republicans have proposed a Wisconsin match to a federal program that would create investment funds for newborns.

One provision of last summer’s One Big Beautiful Bill Act, President Donald Trump’s signature tax and immigration law, was the creation of so-called “Trump Accounts.” Those seed accounts for babies born between 2025 and 2028 would start with a one-time infusion of $1,000 from the federal government, and gain interest over time.

Under the Wisconsin legislation, the state would match that, so that every baby born in Wisconsin during that time frame could start their account with $2,000.

“The funds are invested in low-cost index funds tied to the U.S. stock market, allowing children to grow alongside the American economy,” said Rep. Elijah Behnke, R-Town of Chase. “Parents, guardians and even employers can make additional contributions over time, but (even) without extra deposits, starting early makes a powerful difference.”

The legislation would set aside $60 million in the state budget for the investment funds. Behnke said he believed part of the state’s record surplus could be used for this purpose.

Families or other entities could add up to an additional $5,000 per year into the accounts, which can convert to a traditional IRA when the child turns 18, and could be rolled out of the U.S. Treasury and into other financial providers.

According to a federal compounding interest calculator, an account that does not add any additional money to the initial $2,000 could become just over $6,400 when the child turns 18, assuming an annual average interest rate of 6.7 percent. If families added $25 a month over that same period, the account could reach just over $16,000.

If a family contributes the maximum $5,000 per year, the account would exceed $181,000 on the child’s 18th birthday.

It’s not yet clear whether the proposal has backing in the Senate, or would get signed by Gov. Tony Evers.

The federal Trump Accounts are due to launch on July 5 of this year.

In December, the accounts received a multi-billion dollar charitable donation from Michael Dell, of Dell Computers, and his wife, Susan. The couple pledged $6.25 billion to set up Trump Accounts for kids under the age of 10 born before the cutoff for the federal $1,000 jumpstart. The Dell donations would seed about 25 million accounts with about $250 apiece.