President Donald Trump and the U.S. Treasury are laying out details of a new savings program called “Trump Accounts,” which backers say is designed to expand access to investing for children from low-income families. The program is tied to Trump’s tax legislation and is described as a key milestone in the administration’s pitch on affordability and economic opportunity, with the Treasury and White House highlighting the planned launch of the accounts.
At a U.S. Treasury event Wednesday, officials and high-profile guests discussed how Trump Accounts would work and what they would aim to accomplish. The event included figures such as Texas Republican Sen. Ted Cruz, rapper Nicki Minaj and “Shark Tank” judge Kevin O’Leary, according to the Associated Press account of the program rollout.
Under the plan, a Trump Account is a new savings tool in which money is invested in the stock market on behalf of a child. The child generally cannot access the money until they turn 18, and the account is structured so funds can be used for specific purposes such as paying tuition, starting a business or making a down payment on a home. The administration said investments would be carried out by private banks and brokerages, and that the assets would be invested in U.S. equity index funds while charging no more than 0.10% in annual fees.
The Treasury contribution is intended to cover the initial seed of $1,000, but eligibility depends on a combination of the child’s citizenship status, Social Security number and birth date. To qualify for the seed money, a baby must be a U.S. citizen, have a Social Security number and be born between Jan. 1, 2025, and Dec. 31, 2028. The plan also says any parent can open an account for a qualifying child regardless of the parent’s immigration status.
The program’s launch timeline and enrollment mechanics focus on a later start for account contributions. The Associated Press report says the accounts will not accept contributions until July 2026, but that parents of eligible children can sign up using Internal Revenue Service Form 4547. The report says parents can fill out the form when filing taxes this year or when an online portal opens this summer, and that registering is required for the child to receive the Treasury contribution; parents who sign up in May are expected to receive information about how to finish opening the accounts.
Trump Accounts also contemplate contributions beyond the initial government seed, including limits designed to mirror certain retirement-account frameworks. The Associated Press report says parents could contribute up to $2,500 annually in pretax income and that yearly contributions are capped at $5,000. It adds that employers, relatives, friends, local governments and philanthropic groups can also contribute, and that contributions from governments and charities do not count toward the $5,000 cap.
In addition to the baseline program, the rollout described a set of private efforts that would provide extra seed money for some children who do not qualify for the Treasury’s $1,000 bonus. The report says billionaire Michael and Susan Dell announced a $6.25 billion donation that would allow some children 10 and under to receive $250, reserved for children in ZIP codes with a median family income of $150,000 or less who would not receive the $1,000 seed. It also says Ray Dalio and his wife Barbara pledged $75 million for children under 10 in Connecticut, and that investor Brad Gerstner plans to donate $250 into Trump Accounts for every child under 5 in Indiana.
The event also tied the program to employer matching, with a push aimed at widening contributions through workplaces. The Associated Press report says several major companies plan to add Trump Accounts contributions to their benefits packages, including Uber, Intel, IBM, Nvidia and Steak ‘n Shake, and it describes the administration’s effort as a “50 State Challenge” promoted through the U.S. Treasury. Backers have said these efforts would help more families build wealth through stock-market investment, and they argued the initiative would introduce more Americans to the market.
Trump himself argued that the money would provide assets rather than debt, saying, “Every president in modern history has left our children with nothing but debt,” and adding, “But under this administration, we’re going to leave every child with real assets and a shot at financial freedom.” He also said, “We’re doing something much better than giving the next generation a handout,” and described Trump Accounts as giving “them ownership of America’s future.” At the same event, Gerstner said, “The answer to more socialism is more capitalism,” and added, “This makes every child in America a capitalist from birth.”
Even with the government seed, the program’s access rules and contribution structure are central to how supporters and critics view the initiative. The Associated Press report says it will generally not provide immediate help because the child cannot access the money until age 18, except in rare circumstances, and that disbursements would be subject to taxes. Critics cited in the report argue the accounts do little to help families in early childhood, when they say needs are greatest and when children are most likely to experience poverty.
Critics also argue that the program does not offset other cuts affecting families, including food assistance and Medicaid, and they say Republicans created Trump Accounts in the same tax legislation that reduced spending for some youth and family programs. The Associated Press report further notes a concern about inequality: it says affluent families who can afford the maximum pretax contributions would gain more than poorer families and, assuming a 7% return, describes how the $1,000 seed could grow to roughly $3,570 over 18 years.
The program’s backers have also pointed to prior efforts by states that piloted “baby bonds” programs, saying those initiatives are similar in some ways but targeted for certain groups. The Associated Press report says California, Connecticut and the District of Columbia were piloting such programs before Trump created Trump Accounts, and it says other states including Maryland have been weighing similar efforts, while noting those state programs can differ in who qualifies and how accounts are managed.