Elon Musk pledges SpaceX shares for children under Trump-run investment accounts, but restrictions apply
Elon Musk announced a $10.66 billion donation of SpaceX stock to children enrolled in Treasury-run accounts, yet families face a five-year holding period and cannot decline the shares.
President Donald Trump’s Treasury-administered accounts, known as Section 530A accounts, will soon include a $1,000 federal seed deposit for eligible children and, according to Elon Musk, a share of SpaceX stock for each participant. Musk announced on Oct. 19 that the company will contribute shares valued at roughly $10.66 billion to the program.
"The major donors we've engaged are motivated by a desire to help children build generational wealth and get a head start on their financial future," a Treasury official told CNBC.
The shares will be placed in the Trump accounts, and families will be unable to sell them for at least five years or until the beneficiary turns 17, whichever occurs first. The restriction also prevents families from opting out of the program or selecting alternative stocks.
"The research was overwhelmingly clear that auto enrollment is the way to get to full participation, especially for low-income folks, and I think the Treasury listened," a Washington policy advisor told the New York Times.
Most of the account holdings will remain in low-cost exchange-traded funds, while the SpaceX allocation represents a minority position. Additional private donations, such as a $250 per-child contribution from Michael and Susan Dell, target children who do not meet the birth-date criteria for the federal seed deposit.
Parents must claim the account to receive the $1,000 deposit and may add further contributions or employer matches. Enrollment has been automatic for roughly 70 million children, though earlier participation was limited to 7-10 million due to awareness gaps among lower-income households.