American Airlines to Match $1,000 Trump Account Contributions
American Airlines has announced it will match the federal government's $1,000 contribution to Trump Accounts for eligible employees' children, a benefit set to launch in 2027. The carrier confirmed the move to FOX Business, stating it will make a one-time $1,000 contribution for each eligible child born between January 1, 2025, and December 31, 2028, who has established a Trump Account and qualifies for the federal government's $1,000 contribution.
The match applies on a per-child basis, meaning an employee with two qualifying children could receive two $1,000 federal contributions and two additional $1,000 contributions from the airline. The benefit will be available to all -based American Airlines employees. The airline will also allow eligible employees to direct up to $2,500 in pretax earnings each year into their dependent children's Trump Accounts beginning in 2027.
American Airlines Chief People Officer Cole Brown announced the new benefit to employees on Monday, telling team members the airline was looking for additional ways to help them build long-term financial security for their families.
"American will support eligible team members who choose to participate in the new Trump Accounts program by matching the federal contribution," Brown said. "For eligible children born between 2025 and 2028 who have established a Trump Account, American will match the federal government's one-time $1,000 contribution with an additional one-time $1,000 contribution of our own."
American Airlines Chief Executive Officer Robert Isom shared a statement with CNBC, saying: "At American Airlines, our purpose is to care for people on life's journey, and that includes helping our team members build a strong financial future for themselves and their families."
Approximately one-third of American's workforce has children who would qualify for a Trump Account and could therefore take advantage of the pretax contribution option, according to the airline. American did not provide an estimate of how many employees or children could qualify for the company's $1,000 matching contribution.
The airline joins a growing list of US employers matching contributions to Trump Accounts, which were created under the One Big Beautiful Bill Act (OBBBA). More than 50 companies have committed to contributing to Trump Accounts for their workers in some capacity, according to the S. Treasury Department. Goldman Sachs and Morgan Stanley are among the companies that have offered to match the government's $1,000 contribution, CNBC reported.
Trump Accounts: How They Work
Trump Accounts, also known as 530A accounts, are tax-advantaged investment accounts for children. Any child under the age of 18 can set up a Trump Account; however, only newborns after January 1, 2025, are eligible for the $1,000 government grant. The Treasury's $1,000 grant remains fully in the children's name, and parents or caregivers are the only custodians of the funds until they turn 18.
Parents and legal guardians can set up Trump Accounts by filling out IRS Form 4547 or through the Trump Accounts Platform. Contributions to Trump Accounts are tax-deferred, and parents, guardians, grandparents, and others can contribute up to $5,000 annually until the year before the beneficiary turns 18, according to CNBC. While no further contribution is mandatory, to maximize return on investment, it is encouraged to add up to $5,000 per year.
Additional contributions can be made through recurring payments or one-off deposits with participating payment cards on the platform. Account holders can download apps on Google Play or the Apple App Store to review balances, returns, and forecasts, and those with multiple children can view accounts side by side.
Funds in a Trump Account cannot be withdrawn until the child turns 18, at which point they convert to retirement accounts (IRAs). The federal contribution is managed through low-cost mutual funds, and the accounts are designed to help children build a steady investment that can be withdrawn once they become 18 or be invested into future retirement plans.