What every Murray-Massenburg student gets

All 700 students at Murray-Massenburg Elementary School will be enrolled in a savings account with a $500 starting balance, Mayor Leo Williams and Invest America Foundation founder Brad Gerstner announced Friday at the Title I school. That $500 comes from two sources: a $250 federal or philanthropic base, plus a personal $250 contribution from Gerstner for each child.

The announcement came as Williams officially launched "Invest America Durham," a local initiative to enroll every Durham child age 10 and younger in a savings account. City Council member Carl Rist joined Williams and Gerstner at the May 22 event.

How the accounts work

Known federally as “Trump Accounts,” these savings accounts are long-term investment vehicles for children under 18, created under the 2025 One Big Beautiful Bill Act (OBBBA) as new Internal Revenue Code Section 530A. They differ from 529 education plans: the money is meant to build lifelong wealth, not pay tuition. Funds go into the S&P 500, and families or employers can add up to $5,000 a year, though contributions carry no federal tax deduction.

Seed money varies by birth year. Children born between Jan. 1, 2025 and Dec. 31, 2028 can receive a $1,000 deposit funded by the U.S. Treasury. Most children born between 2016 and 2025 qualify for a $250 deposit funded by the Michael & Susan Dell Foundation.

What local leaders said

Rist was candid about the program's origin. "I'll be honest with you, it's unexpected this is coming from this administration," he said. "At the same time, politics is the art of the possible." He urged parents to claim the money regardless, calling it free money any financial adviser would recommend taking.

Gerstner framed the accounts around economic mobility, saying the idea was inspired by Abraham Lincoln's argument that the most important American right is the right to rise. Williams told students the city believes in investing in their futures financially, and that it is important for parents to have what they need to make life good for their children.

In North Carolina, 1.3 million children ages 2 to 8 are eligible for the $250 deposit. More than 200,000 accounts have been claimed statewide as of May, including 51,000 by children who qualify for the $1,000 grant.