Altimeter's Gerstner targets $100 billion for Trump Accounts stock gifts

Elon Musk's planned donation of $10.5 billion in SpaceX shares to U.S. children serves as the initial catalyst for a broader fundraising effort, according to Brad Gerstner, CEO of Altimeter Capital and founder of Invest America. Gerstner stated Wednesday that he aims to raise $100 billion over the next 12 months to sponsor Trump Accounts, describing Musk's contribution as the "tip of the iceberg" in an interview with CNBC's "Squawk Box." He noted that he has spoken with every major tech CEO and founder about participating in the initiative.

The proposed $100 billion fundraising goal represents approximately one-sixth of total U.S. charitable giving, which amounted to $592.5 billion in 2024 according to the National Philanthropic Trust. Gerstner has personally committed $35 million to seed investment accounts for children in Indiana. The feasibility of large-scale stock donations relies on temporary regulations rolled out by the U.S. Department of the Treasury at the end of September, which permit Trump Accounts to hold donated individual stocks. Previous guidelines restricted these accounts to diversified, low-cost index funds.

Adam Bergman, a tax attorney and founder of IRA Financial, stated that the Treasury's regulatory change targets mega-donors and large philanthropic foundations, such as the Dells. This carve-out allows donors to transfer large blocks of publicly traded stock without triggering substantial capital-gains taxes. Frank Bisignano, CEO of the Internal Revenue Service, told CNBC on Oct. 8 that other philanthropists are poised to participate, ranging from small donors to "mega donors in the nine-digit range." Treasury Secretary Scott Bessent posted on X on Monday that the department looks forward to more philanthropists joining the movement to help children jumpstart their financial future.

These developments occur weeks after the Treasury Department auto-enrolled more than 60 million children in Trump Accounts, also known as 530A accounts. The accounts are open to any U.S. child under 18 with a Social Security number, and children born between 2025 and 2028 may claim a one-time $1,000 pilot program contribution from the Treasury. Gerstner indicated that there is a push to expand access to these accounts for all U.S. citizens under age 40, suggesting this would allow individuals to create vehicles for compounding investments earlier in their lives.

According to CNBC's analysis of U.S. Census Bureau data, about 90 million U.S. citizens are between 18 and 40 years old, in addition to the more than 70 million children under 18. Expanding the age limit would require a legislative change from Congress. Sen. Bernie Moreno, R-Ohio, called the proposed expansion a "game-changer" in an X post on Tuesday and said he would lead the bill in the Senate. While Gerstner described the proposal as "wildly popular" among Congressional Democrats and Republicans, it remains unclear whether it has the legislative backing needed to become law.