Bank of America to Match Federal Deposits in New Employee Trump Accounts

2026-01-28 companies

Charlotte, Wednesday, 28 January 2026.
Bank of America will match the government’s $1,000 contribution to Trump Accounts, allowing eligible employees to effectively double their children’s initial seed money and secure tax-advantaged growth through payroll deductions.

Corporate Strategy Meets Public Policy

In an internal memo circulated on Wednesday, January 28, 2026, Bank of America (BAC) confirmed it will match the federal government’s initial $1,000 contribution to “Trump Accounts” for eligible employees [1][2]. This initiative covers the bank’s U.S. workforce of 165,000, specifically applying to employees with children born between January 1, 2025, and December 31, 2028 [1]. The move is part of a broader push to integrate the new federal savings vehicle into corporate benefit structures, with the bank allowing staff to make pretax contributions directly through payroll deductions [1][2].

Program Structure and Implementation

The “Trump Accounts,” formally established under the One Big Beautiful Bill Act, are scheduled to launch publicly on July 4, 2026 [1][2]. Under the legislation, the U.S. Treasury will provide a seed deposit of $1,000 for every eligible American child [2]. While the federal program limits family contributions to $5,000 annually, employers are permitted to contribute up to $2,500 per year per employee [3]. Bank of America’s commitment utilizes a portion of this employer cap, effectively doubling the initial seed capital for its employees’ newborns to 2000 dollars.

Industry Adoption and Economic Context

Bank of America’s announcement aligns it with a growing coalition of financial institutions supporting the administration’s savings initiative. Competitors and peers, including Charles Schwab, Robinhood, SoFi, and BNY, have previously pledged to match the federal contribution for their respective workforces [3][8]. This wave of corporate adoption coincides with a summit held in Washington, D.C. on Wednesday, where President Donald Trump and Treasury Secretary Scott Bessent met with CEOs and investors to further promote the accounts as tax season begins [3][4].

Long-Term Investment Outlook

The capital within these accounts is mandated to be invested in broad U.S. stock index funds, designed to grow tax-deferred until the beneficiary reaches adulthood [2]. The Treasury Department’s Office of Tax Analysis has projected aggressive growth potential for these vehicles; a fully funded account could theoretically reach $1.9 million by the time the child turns 28, although more conservative estimates place the value near $600,000 [1]. To further incentivize participation among lower-income families, private philanthropists Michael and Susan Dell have pledged $6.25 billion to provide additional seed funding for children in specific economic demographics [4].

Sources

trump accounts employee benefits