SB 988

This bill requires the Department of Financial Institutions to make contributions to certain Trump accounts.

Federal law provides for the establishment of Trump accounts for eligible individuals and allows for the accounts to begin accepting contributions on July 4, 2026. A Trump account is a type of traditional individual retirement account (IRA) that is established for the exclusive benefit of an eligible individual, also known as the account beneficiary, and that is designated as a Trump account when the account is opened. An eligible individual is an individual for whom an election is made to establish a Trump account, who has not attained 18 years of age before the end of the calendar year in which the election is made, and who has been issued a social security number. Although a Trump account is similar to a traditional IRA in most respects, it is subject to special rules until the end of the calendar year before the calendar year in which the account beneficiary attains 18 years of age. During this period, there is a restriction on the types of investments in which Trump account funds may be invested and generally no distributions may be made from the Trump account. Under a federal pilot program, the federal Treasury Department generally pays $1,000 into the Trump account if the account beneficiary was born in a calendar year from 2025 to 2028, is a U.S. citizen, has a social security number, and has elected to receive the payment. Federal law also provides that a state or local government may contribute to the Trump accounts of a specified class of individuals, such as state residents under age 18, and that these contributions are not taxable to the recipients or subject to an annual limit on contributions.

This bill requires DFI to make a matching contribution of $1,000 to a Trump account if the federal Treasury Department has made a payment to the Trump account and the account beneficiary was born in this state and resides in this state at the time of DFI’s contribution. However, DFI must make contributions to Trump accounts only to the extent that funds are available.