Senator Ted Cruz (R) joined Texas Business leaders to promote employer contributions to Trump Accounts, with American Airlines announcing it will match the federal contribution for eligible employees' children.
What did Cruz discuss with Texas business leaders?
Sen. Cruz participated in a press conference and executive roundtable with Dell Technologies founder Michael Dell, Altimeter Capital founder Brad Gerstner, IRS CEO Frank Bisignano, and dozens of Texas business leaders.
The discussion focused on how employers can contribute to Trump Accounts for employees' children and potentially make a long-term impact on families' financial futures.
What are Trump Accounts?
Trump Accounts are private, tax-advantaged investment accounts for American children. Under the law, children born between Jan 1, 2025, and Dec. 31, 2028 are eligible for a $1,000 federal contribution.
The accounts can receive contributions from individuals, family members and friends of up to $5,000 annually, while employers may contribute up to $2,500 per year.
Earlier this month, the U.S. Department of the Treasury and IRS issued proposed regulations addressing employer-sponsored contributions to Trump Accounts.
American Airlines announced it will match the $1,000 federal contribution to Trump Accounts for eligible employees' children. The airline will also allow eligible employees to contribute up to $2,500 of pretax earnings each year to a Trump Account.
What did Cruz say?
Cruz described Trump Accounts as a transformative policy that could introduce children to investing and compound growth while giving them a personal investment account they own.
Sen. Ted Cruz: "I believe within a few years we will see Trump Accounts as a standard employee benefit across the country."
He also credited Brad Gerstner for bringing him the idea, President Trump for signing his legislation into law, and Michael and Susan Dell for their $6.25 billion commitment.
