Elon Musk announced earlier this week that he intends to provide SpaceX stock shares to every child in America beginning next year. According to Altimeter Capital CEO Brad Gerstner, these donations would be facilitated through Trump Accounts, newly established tax-deferred investment vehicles for minors.
Gerstner characterized Musk’s proposed $10.5 billion contribution as merely the initial phase of a larger philanthropic initiative. He stated that he aims to raise approximately $100 billion over the next twelve months to fund accounts for all American children, noting discussions with major technology executives and founders. This fundraising target would represent roughly one-sixth of total annual U.S. charitable giving, which amounted to $592.5 billion in 2024.
The U.S. Department of the Treasury modified its regulations at the end of September to permit Trump Accounts to hold individual stocks, expanding beyond the previous restriction to diversified index funds. Tax attorney Adam Bergman explained that this regulatory change was designed to facilitate large philanthropic donations by allowing donors to contribute substantial blocks of publicly traded shares while minimizing capital-gains tax obligations. The revision has created pathways for additional large-scale charitable gifts, with Internal Revenue Service leadership indicating that numerous donors across various contribution levels have expressed interest in participating.
Trump Accounts, formally designated as 530A accounts, are accessible to any U.S. child under 18 with a Social Security number. Children born from 2025 through 2028 are eligible for a one-time $1,000 Treasury contribution. Gerstner has also proposed expanding account eligibility to all Americans under age 40, which would require congressional authorization. Senator Bernie Moreno has indicated support for such legislation, though the proposal’s prospects for passage remain uncertain despite reported backing from members of both major political parties.
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