SpaceX Stock Gift Through Trump Accounts Would Lock Children Out for Five Years Under Treasury Rules

Elon Musk announced plans to give one share of SpaceX to every child in America, a giveaway that would cover roughly 72 million children and represent a gift valued at approximately $10.5 billion based on his stake. He appeared to signal the shares would flow through Trump Accounts, also known as 530A accounts, thanking Brad Gerstner, an architect of the program, for helping enable the gift, with the White House and Treasury Secretary Scott Bessent also linking the pledge to those accounts.

If the shares are distributed through Trump Accounts, Treasury Department temporary regulations published in late September would impose significant restrictions. Families would be unable to refuse donated stock and generally could not sell it for five years, or until the end of the calendar year in which the child turns 17, whichever comes first. That lock-up applies even if SpaceX runs into financial trouble. Lawyers and philanthropic experts told CNBC the rules give donors unusual influence over children's investments, with one attorney and former IRS national fraud counsel noting that under these rules it is the donor, not the trustee, who dictates the terms.

Critics have also raised a broader policy concern: Treasury officials justified stock donations to Trump Accounts partly by saying they give children a personal stake in a corporation's fate, but experts warn the structure could politically shield companies like SpaceX from regulations or tax increases that might otherwise reduce their share value.

Separately, economists expect 10-year Treasury yields to remain above 5% well into 2027. Steven Barrow, head of G10 strategy at Standard Bank and a strategist who accurately forecast the current move above 5%, raised his year-end estimate to 5.2% and sees yields reaching 5.3% in the first quarter of 2027, a level not seen consistently since 2007. The forecasts signal that relief from elevated borrowing costs remains distant.