The US Treasury Department and the IRS have proposed formal rules banning ESG-focused funds from Trump Accounts, the tax-advantaged savings vehicles created for American children under the One Big Beautiful Bill Act. These accounts, officially launched on July 4, 2026, start with a $1,000 government seed contribution and accept annual contributions up to $5,000. More than 500,000 families had enrolled by late January 2026. To qualify, funds must track an index composed of at least 90% US companies by weight, with fees capped at 0.1% and no leverage. Trustees managing these accounts must verify compliance yearly and have 30 days to divest any ineligible holdings.
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