By Eleanor Dearman
Fort Worth Star-Telegram
(TNS)
Fort Worth-based American Airlines will match the $1,000 federal contribution into Trump Accounts for its employees’ children, the company’s CEO said Monday.
American Airlines Group CEO Robert Isom discussed the initiative during a news conference in Austin with Sen. Ted Cruz, a Texas Republican who helped lead the charge on the investment accounts in Washington.
American children born between Jan. 1, 2025, and Dec. 31, 2028, are eligible for Trump Accounts, a type of investment account meant to set children up financially later in life. Up to $5,000 can be invested into the accounts per year.
In addition to matching the initial one-time $1,000 federal investment employees who have children with the accounts, American Airlines will allow employees to annually contribute $2,500 pre-tax to “help build long term financial security for the next generation,” Isom said.
“It’s another way we’re helping our team and our team’s families create a stronger foundation for the future,” Isom said.
American Airlines spokesman Matt Miller said employees can get the match for each child with a Trump account. The $2,500 pre-tax contribution is a cap divided amongst any accounts, he said.
American Airlines has more than 40,000 employees in Texas. The company is working to implement the new benefits by 2027 with more details about how to participate expected in the coming weeks, according to an email that was sent to employees Monday.
Dell CEO Michael Dell also joined Cruz at the Monday news conference. He and his wife Susan Dell have pledged $6.25 billion for Trump Accounts. The donation offers an additional $250 to children under the age of 10 who live in ZIP codes where the median income is below $150,000.
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Other attendees included Social Security Commissioner and IRS CEO Frank Bisignano, Brad Gerstner, the CEO of Altimeter Capital and BNY CEO Robin Vince.
Other business leaders joined Cruz for a roundtable discussion following the news conference.
Children are currently not automatically enrolled for Trump Accounts, but the automatic enrollment for children under the age of 18 is the ultimate vision, Cruz said.
“That is what the president has said,” Cruz said. “That is what the Treasury Secretary has said. That is what is written into the statute: That every child will have an investment account and that way every child has skin in the game.”
Photo credit: Quintin Soloviev/Wikimedia Commons
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