In short, qualifying parents can scoop up $1K for their kids

The list of items bearing the prefix “Trump” now includes a type of savings account. “Trump Accounts” were originally included in the One Big Beautiful Bill Act, as a tool to help parents save for kids’ college, home purchases, and retirement. On Giving Tuesday, the initiative was boosted by a $6.25 billion donation from Michael and Susan Dell.

In short, qualifying parents can scoop up $1K for their kids (or, if they don’t qualify, but live in a zip code with a median income below $150K, such as Lakewood), $250 for kids under 11 from the Dells, and lock it all in a savings account until the child turns 18. They can add up to $5,000 per year of post-tax money — $2,500 of which can be tax-free gifts from their employer. (Nvidia, Uber, Dell, and T-Mobile have already said they will match employee contributions.)

The money will be invested in mutual funds and stable stocks, expected to grow at 6% annually. (Earnings will be taxed upon withdrawal by the beneficiary at their tax rate.) The account then converts to an IRA, saving pre-tax money until retirement at age 59½.

The upshot? According to Charles Schwab, with contributions and reasonable investment growth, the accounts will be worth $191,000 by the time the child turns 18, and $2.2 million when he is ready to retire at 60.

Of course, the real capitalists have dollar-eyes over the new program, too. Financial companies like JPMorgan Chase, Robinhood, Charles Schwab, and BlackRock are lining up to manage the accounts and their investment funds, for minimal fees.

The Afraudable Care Act

The House Government Accountability Office (GAO) filed an initial report on fraud in the Affordable Care Act marketplace. Investigators applied for health coverage using fake or dead identities, to see what would happen. The results were astounding.

Loss to taxpayers: $27 billion

Percent of fake applications approved: 100%

Monthly subsidies paid to fake GAO accounts: $12,300

Subsidies paid out in 2023 alone with no verification: $21 billion

Unauthorized enrollment changes by brokers earning commissions: 275,000 in just eight months. Here's hoping this gravy train has made its last run.

Walzing the Money Away

About a billion dollars disappeared during Covid in the Minnesota Somali community, and since then, hundreds of millions more may have followed, according to investigations conducted by various government agencies.

House Oversight Committee chair James Comer opened an investigation against Minnesota governor Tim Walz for squelching more than 500 whistleblowers at his state’s Department of Human Services. Meanwhile, the US Treasury Department is looking into whether $200 million ended up funding Islamic terror abroad, including the Somali terror group Al-Shabaab.

City Journal reports that more ISIS loyalists come from Minnesota than any other state- 26% of all Americans that joined the terror group. Many of these boarded planes with suitcases stuffed with fraud-obtained cash, and some even financed their flights with welfare.

And how does Somali doyenne and congresswoman Ilhan Omar explain the apparent vast fraud scheme in her community? “The guardrails did not get created.”

The Extra Dollar Store

If you like shopping at dollar stores, check your receipts.

Inspectors checking prices displayed on shelf tags against amounts charged at the register found wild discrepancies at Dollar General and Family Dollar. Some stores had errors on over 75% of the items, while allowable state limits are about 2%. A Family Dollar in New Jersey was caught overcharging on 68% of its items.

Many states have levied fines against the two, but offenses continue.

“It’s cheaper to just pay the fines,” one official told the Guardian.

Some states sued; New Jersey settled with Dollar General for $1.2M in a lawsuit filed regarding more than 2,000 items in 58 stores.

The price differences hit the neediest Americans hardest. Many don’t notice the discrepancies, which add up quickly after multiple purchases.

(Originally featured in Mishpacha, Issue 1090)