Gavin Newsom Gives Full-Throated Praise For Recent Trump Policy

California Democratic Gov. Gavin Newsom offered unusually supportive praise for one of President Donald Trump’s signature policies, urging families to enroll their children in Trump Accounts.

“I am enthusiastic about encouraging people to get a Trump account,” Newsom said last week. “It’s one of the best things he’s done. Take advantage of this. It means something for your kid. We want to encourage everybody out there to take advantage of this program.”  

Newsom, one of Trump’s most outspoken political opponents, made the remarks in San Francisco as California celebrated one million children claiming accounts through CalKIDS, the state’s college savings program. California officials are encouraging families to combine benefits available through CalKIDS and the federal Trump accounts program.

“I’m pretty aggressive pushing back against Trump, but not on this,” Newsom told ABC7. “This was one of the really outstanding things that this administration has done. And they deserve a lot of credit.”

Trump Accounts officially launched on July 4, 2026, the 250th anniversary of the United States. About 7 million children have already been enrolled, with roughly one million additional sign-ups each month. 

Children under 18 with Social Security numbers are eligible for the tax-advantaged investment accounts. U.S. citizens born between January 1, 2025, and December 31, 2028, are also eligible for a one-time $1,000 contribution from the federal government. The program was established through Trump’s One Big Beautiful Bill Act. 

According to White House projections, the $1,000 seed investment for a child born in 2026 could grow to about $5,800 by age 18 without any additional contributions. Under the administration’s maximum-contribution scenario, the account could grow to approximately $303,800 by that age.

By age 28, the account could reach about $18,100 without additional contributions or as much as $1.09 million under the maximum-contribution scenario, demonstrating the long-term power of reinvesting earnings.

Parents, relatives, and others may contribute up to a combined $5,000 per year, with the limit indexed to inflation beginning after 2027. To encourage participation, the Trump administration also made qualifying employer contributions up to $2,500 tax-exempt. Employer contributions count toward the $5,000 annual limit.

When participants reach adulthood, the account converts to a traditional IRA, but withdrawals can be made without penalties for approved expenses, including college tuition, purchasing a home, or starting a business.

The Trump administration issued guidance in June allowing state and tribal child welfare agencies to open and manage accounts on behalf of eligible children in foster care.

Treasury Secretary Scott Bessent had called the program “the most important benefit for young people since the GI Bill.”