Key takeaways
- Trump Accounts are officially open for contributions and the government recently made a number of announcements about how the accounts will operate.
- The Supreme Court rebuffs President Donald Trump's attempt to fire Federal Reserve Governor Lisa Cook in a win for the central bank's independence.
- A bipartisan bill to make housing more affordable is set to become law this week—but it may do so without the president's signature.
Congress is in recess from June 30 through July 13 for the annual July 4 break, so it's relatively quiet in the nation's capital. But there is still plenty worth paying attention to.
Trump Accounts, the new savings vehicles for children created as part of last year's One Big Beautiful Bill Act, formally launched on July 4. Parents can now make contributions to the accounts and the federal government's $1,000 starter contribution for eligible babies born on or after January 1, 2025, began going into accounts on July 4 as well.
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The U.S. Treasury Department says more than 6 million accounts have been opened, and that about 1.4 million of those are eligible for the government contribution. The launch also included a flurry of announcements on operational aspects of the accounts. Notable developments include:
- Treasury picks the initial investment lineup. Treasury announced on July 1 that the default investment option for the accounts will be the State Street SPDR Portfolio S&P 500 exchange-traded fund (ticker symbol SPYM). The agency also announced that four other basic investment options would soon be available, including an iShares S&P 500 ETF (IVV), an iShares total stock market ETF (ITOT), State Street's S&P 1500 Composite Stock Market ETF (SPTM), and Vanguard's Total Stock Market ETF (VTI).
- Rollover details are coming. While Bank of New York Mellon and Robinhood were selected as the initial providers of Trump Accounts, the White House has said that accounts will soon be able to be rolled over to other brokerages. A Treasury official said last week that rollover guidance would be forthcoming this summer, but that the administration was focused initially on a smooth public launch of the accounts. Once that guidance is released, account owners should be able to transfer their accounts to their preferred provider.
- Stock donations will be accepted. Treasury said on July 2 that Trump Accounts will soon be able to accept donations of stock from individuals and corporations. Guidance from Treasury on the mechanics of stock transfers is expected in the coming weeks. Allowing stock donations could also open up a new option for charitable giving planning if Treasury treats donations of appreciated shares to Trump Accounts similarly to donations of stock to charitable organizations.
- Parents can enroll their newborns while at the hospital. The Social Security Administration announced July 3 that it is creating a process for new parents to enroll in a Trump Account at the same time they are registering their newborn for a Social Security number, which typically happens at hospitals immediately after the birth. Timing on when the option will be available has not yet been finalized. One goal is to boost enrollment. While the administration says about 1.4 million babies born since January 1, 2025, have registered for an account, that represents only about 25% of all eligible children. Increasing enrollment is expected to be a top priority of the administration over the next year.
Court rebuffs attempt to remove Fed governor
Elsewhere, in a 5-4 decision issued on June 29, the Court ruled that the president did not provide Federal Reserve Governor Lisa Cook with appropriate due process when he attempted to fire her in August 2025 over allegations of mortgage fraud that took place before she was even nominated to the Fed by former President Joe Biden in 2022. (To date, Cook has not been charged with a crime.)
Cook sued the president for violating a federal law that allows Fed governors to be fired "for cause" and for failing to provide her with due process to respond to the allegations. Lower courts blocked the firing and allowed Cook to remain at the Fed. Oral arguments in the case were heard at the Supreme Court in January. In last week's ruling, the Court said Cook can continue to stay at the Fed while her challenge to her firing returns to the lower courts.
But the case was larger than just due process—it went to the heart of the central bank's independence. Writing for the majority, Chief Justice John Roberts acknowledged that the Fed's independence was critically important. "Not only the fact of independence but the appearance of independence is key to the Federal Reserve's design," Roberts wrote. Allowing the president to fire a Fed governor without any process "would in effect transform the Federal Reserve's for-cause protection into at-will employment—an interpretive leap out of step with the statute Congress enacted and our Nation's tradition of central banking protected from political interference." The president vowed to proceed with his efforts to fire Cook despite the setback, but that process could take months or years. Market watchers breathed a sigh of relief as the verdict, at least for now, reinforces that the Fed's independence remains a cornerstone of the global financial system.
Affordable housing legislation set to become law
Legislation to boost affordable housing passed Congress with overwhelming bipartisan support last month. The bill seeks to make housing more affordable and boost supply by reducing regulatory red tape, speeding up the permitting process, making federal grants available to states for affordable housing and restricting large institutional investors from buying up properties.
It was approved June 22 by the Senate on an 85-5 vote and passed by the House the next day by a 358-32 margin. A signing ceremony was set for June 24 in the U.S. Capitol, complete with flags, seating, a stage, and a desk where the president would sign the legislation into law. But President Trump abruptly canceled the event less than an hour before its start, saying he would not sign any legislation until Congress passes the Safeguard American Voter Eligibility Act, better known as the SAVE America Act, the election security bill that has been bogged down on Capitol Hill for months and does not have enough votes in the Senate to pass.
Despite the unexpected wrinkle, the housing bill will become law automatically on July 10, under the constitutional provision that allows a bill to become law if the president takes no action within 10 days of receiving it from Congress. President Trump could veto the bill, but that seems unlikely given that it passed both chambers with veto-proof majorities. The whole situation is highly unusual, as the rare passage of a major bill that targets affordability should have been a triumphant moment for both parties but instead seems likely to become law with no fanfare at all.
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