President Donald Trump said Monday that he was looking to implement a new program, similar to the popular “Trump Accounts,” but focused on growing wealth for adults rather than children.
The president held an event commemorating the official launch of the Trump Accounts at the White House on Monday, where he told reporters that he was speaking to Congress about implementing the new program, which is loosely modeled off of requirements in Australia.
“It’ll be also, I think, very popular, and I guess the best definition is they have a plan in Australia, which people really like,” he said. “That would be more for grown-ups, as opposed to children, but it’s something that’s going to be great, I think, if we can get it done.”
Australia’s superannuation program requires all employers to contribute at least 12% of workers’ pay into a retirement account in addition to paying out a worker’s full salary. White House officials declined to say if Trump was referencing the program or another initiative.
Many employers match retirement contributions, which are taken out of pre-tax salary, but are not federally required to do so.
Sen. Ted Cruz (R-TX), a longtime proponent of federally backed investment accounts, was present at Trump’s Monday event and previously suggested that Trump Accounts could offer a pathway to privatizing Social Security, the federal retirement program that is at risk of going insolvent within the next decade.
“We’re going to be able to go to parents and say, ‘Hey, you know that Trump Account your kid has that you keep seeing the numbers go up and you’re seeing this compound growth, wouldn’t you like to be able to keep a portion of your tax payments that you’re paying already, and instead of sending it to Uncle Sam, wouldn’t you like to have a Trump Account just like your kid does?’” he said at a Milken Institute event in May. “My prediction is, within five years, that is going to have a really compelling constituency because people will have seen it.”
TRUMP ACCOUNTS OFFICIALLY LAUNCH ONE YEAR AFTER BEING SIGNED INTO LAW
You can watch Trump’s comments in full below.