When babies come preloaded with $1,000.

I'm David Brancaccio in Los Angeles.

The federal government has promised to put $1,000 into an account for every new baby, regardless of family income.

The Trump account is the branding.

There was a summit yesterday with more details on how these will work, Marketplace's Carla Javier

reports.

There was a lot of good news at the summit, says Ray Boshara at the Aspen Institute.

He works on policies to build wealth for low-income people and advised Congress and the administration

on the accounts.

Trump accounts really are kind of a historic property.

The government is saying that all newborns are eligible to receive a Trump account. And if they're lucky enough to be born between 2025 and 2028, they'll get $1,000 from the government. No strings attached.

One problem, though, says Boshara, is that the accounts are not opened automatically.

Families have to choose to open an account, either while filing taxes or eventually through a

government portal.

They've designed kind of an opt-in process using tax returns and portals that a lot of especially lower income families

simply won't participate in.

Because they don't file taxes or might not know what the accounts are all about.

But William Elliott at the University of Michigan says if families do sign up, these accounts

can act as wealth reservoirs.

The advantage of them is that it does allow for multiple streams of assets to flow into it.

Allowing for the potential for additional contributions from philanthropy, employers, state governments,

and families themselves can contribute to the tax-deferred investment accounts as well.

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