What Happened
During his State of the Union address on February 24, President Donald Trump announced the upcoming launch of Trump Accounts, a new savings initiative aimed at children. Set to begin on July 5, 2026, these accounts will provide a $1,000 seed money contribution from the federal government for every child born between January 1, 2025, and December 31, 2028. The initiative is part of Trump’s One, Big, Beautiful Bill Act, which was signed into law on July 4.
Why It Matters
Trump Accounts are designed to function similarly to Individual Retirement Accounts (IRAs) for children, allowing parents, guardians, and friends to contribute up to $5,000 annually, with the limit adjusting for inflation after 2027. The accounts will be invested in low-cost index funds, potentially growing to significant amounts by the time the children reach adulthood. Treasury Secretary Scott Bessent reported that approximately 3 million children are already signed up for the program, highlighting its potential impact on future generations’ financial stability.
What’s Next
Parents can begin the process of opening Trump Accounts now, although contributions will not be permitted until the official launch in July. The initiative aims to encourage savings and investment among young Americans, with the possibility of substantial growth over time. As the program rolls out, further details regarding eligibility and contributions will be clarified, particularly for children born before 2025 who will also be eligible for the accounts without the initial federal contribution.
