Jan 28 (Reuters) – Bank of America (BAC.N), opens new tab and Wells Fargo (WFC.N), opens new tab will match the U.S. government’s initial $1,000 contribution to the proposed Trump Accounts for eligible employees’ families, according to internal memos seen by Reuters on Wednesday.
The Trump Account, created as part of President Donald Trump’s One Big Beautiful Bill Act and expected to be rolled out on July 4, will see the U.S. Treasury deposit $1,000 of seed money into investment accounts for all children born between 2025 and 2028 with a valid Social Security number.
Rival JPMorgan Chase (JPM.N), opens new tab also said it will match the U.S. government’s one-time $1,000 contribution to children of eligible U.S. employees.
Trump on Wednesday urged American businesses to contribute to employees’ family accounts. The president and his Republican Party have been seeking to address voters’ affordability concerns ahead of the November midterm elections.
The accounts have been pitched by backers as a long-term wealth-building tool to help children build savings early in life.
Supporters argue that starting investments at birth can improve economic mobility and give future workers a stronger chance to climb the economic ladder.
BofA will let eligible employees make pre-tax contributions to these accounts through payroll deductions, it said in the memo.
The government program limits these contributions to $5,000 per year, with the employer portion expected to be limited to $2,500 per year.
Earlier this month, BofA, the second largest U.S. lender, said it would award about $1 billion in equity to all employees except senior management, after it capped a strong year marked by a surge in profits.
This year JPMorgan also granted a special award of $1,000 to eligible employees globally, earning less than $80,000 in total annual cash compensation.
The banking industry is looking to another strong year, with investment banking revenue expected to benefit from a rebound in dealmaking and IPOs, while interest income is expected to gain from a pickup in loan demand.
