Elon Musk’s proposal to give one SpaceX share to every American child next year is being presented as the first major test of a new private-sector funding model for Trump Accounts, the tax-advantaged investment accounts created for children. Musk announced the plan Monday but did not publicly define “kid, ” explain whether the offer covers every minor or only certain children, or provide distribution details.
Brad Gerstner, founder and chief executive of Altimeter Capital and an architect of the accounts, said Wednesday that the SpaceX shares would be placed into Trump Accounts. Population of just over 72 million people under 18, the proposed transfer would be worth about $10. 5 billion. Gerstner described Musk’s contribution as only the beginning of a larger campaign and said he believes he can raise $100 billion over the next 12 months to sponsor children’s accounts. He also said he had spoken with major technology executives and founders.
A separate SpaceX pledge announced in July by company president Gwynne Shotwell and her husband would provide one share each to about 2 million children’s accounts, with a value then estimated near $300 million.
Children born between 2025 and 2028 can qualify for a one-time $1,000 Treasury contribution, while the Treasury Department has said the program’s app allows families to view balances, add money and track investment performance.
Proposed tax rules would allow readily tradable public-company stock to be transferred to Trump Accounts as part of a philanthropic contribution, while other contributions would generally remain cash-based. The rules also require account trustees to monitor eligible investments and reinvest proceeds when an investment no longer qualifies. The proposed SpaceX transfer has not been completed, and its eligibility, timing, share-ownership structure and treatment of children outside a clearly defined age or residency group remain unresolved.