Report says SpaceX discussed stock donation for Trump Accounts

In short: A report says SpaceX has talked with US officials about donating stock to Trump Accounts, a new savings program for children.

What happened

A person familiar with the discussions told Semafor that SpaceX and the US government have talked about SpaceX donating stock to Trump Accounts. Stock means ownership in a company, like owning a small slice of a pizza. It is not clear whether SpaceX will actually donate, or how much.

Trump Accounts are set to officially launch on July 4. They are described as a new type of individual retirement account, or IRA, which is a savings account meant for the long term. Any child under 18 with a Social Security number can be signed up, and parents can use a Trump Accounts phone app to enroll.

The program includes a one-time $1,000 government contribution for children born between 2025 and 2028. Families can also add up to $5,000 per year, and the money can be invested in American companies chosen by the government. Ars Technica reported that 6 million children have already been signed up.

There have already been large donations. Ars Technica noted a $6.25 billion donation from Michael Dell and Susan Dell, and reported that some companies, including BlackRock and Bank of America, plan to match employee donations.

Why it matters

If a major company donates stock, it could raise the value of some children’s accounts without families adding more money. But it also raises questions about rules and oversight when the government is closely involved with investments. Separate reports also describe officials discussing the idea of companies voluntarily giving the government shares, which could later be used for public programs, including possibly boosting Trump Accounts.

Source: Arstechnica