Bessent: Trump Account holders will be able to migrate to institutions
Allowing community financial institutions - including credit unions – to serve as authorized Trump Account providers was raised by in the House Financial Services Committee Wednesday. Treasury Secretary Scott Bessent addressed the issue as he appeared before the committee to give the Financial Stability Oversight Council (FSOC) annual report.
H.R. 1 created tax-deferred Trump Accounts that can be established for children under 18. Rep. John Rose, R-Tenn., asked when credit unions and other community financial institutions could participate.
“Initially there will be one master custodian for the accounts. So initially, these small banks will not be able to participate. Eventually the holders of the accounts will be able to migrate out to designated institutions,” Bessent said in response, adding, “I think we are prepared for a flood of signups, and then they will go live on July 5, and the goal is the lowest possible fees on these index funds.”
In a letter sent to the committee before the hearing, America’s Credit Unions encouraged Treasury to ensure credit unions can be authorized providers and has regularly engaged on the topic since H.R. 1 was enacted. A recent Compliance Blog entry examines the latest guidance and requirements for the accounts.
Bessent is scheduled to give the FSOC report before the Senate Banking Committee today, and America’s Credit Unions submitted a similar letter for the hearing’s record, including highlighting challenges implementing H.R. 1’s auto loan interest deductions, and continued support for the Community Development Financial Institutions Fund.