The United States government unveiled the "Trump Accounts" on Tuesday, a savings and investment initiative designed for children under the age of 18, featuring an initial $1,000 contribution from the Treasury Department.
This announcement was made via the official White House account, Rapid Response 47, detailing a plan championed by President Donald Trump as a component of his America First economic agenda.
These "Trump Accounts" are deferred savings accounts aimed at American minors who possess valid Social Security numbers and citizenship.
A primary goal of the program is to instill financial literacy from a young age and enable families to invest in their children's futures over the long term.
The plan stipulates that children born between 2025 and 2028 will receive a one-time $1,000 contribution from the Treasury Department upon account creation, without impacting the annual contribution limit.
Additional deposits to these accounts can be made by parents, grandparents, relatives, employers, or charitable organizations, up to $5,000 annually.
Contributions will commence on July 4, 2026, a date chosen to commemorate the 250th anniversary of American independence.
The funds in these accounts are restricted to investments in U.S. stock indexes—such as the S&P 500—with low fees and no use of financial leverage.
The program also allows businesses to contribute to the accounts of their employees' children through pre-tax contribution plans, with a maximum of $2,500 per year.
According to the announcement, the "Trump Accounts" will be subject to rigorous eligibility checks to prevent fraud and ensure benefits are exclusively available to American children born within the specified period.
Funds will remain locked until the beneficiary reaches 18 years old, at which point the account will operate like a traditional IRA, offering the young adult the option to continue saving or use the money for higher education, home purchase, or entrepreneurship.
To establish an account, parents or guardians must fill out IRS Form 4547, available in 2025, or utilize the trumpaccounts.gov portal starting in 2026.
The White House emphasized that this program signifies "a long-term investment in the next generation of Americans" and presents an opportunity to bolster the savings culture within the nation.
This economic initiative complements other Trump Administration efforts aimed at encouraging family investment, reducing taxes, and increasing citizen participation in the national economy.
Billionaires Michael and Susan Dell announced a historic $6.25 billion donation on Tuesday to enhance the "Trump Accounts."
As reported by AP, the Dells' philanthropic commitment aims to motivate 25 million American families to claim these new investment accounts intended for children under 10 years old.
Understanding the "Trump Accounts" Savings Program
What is the purpose of the "Trump Accounts" program?
The "Trump Accounts" program aims to teach financial literacy from a young age and help families invest in their children's futures over the long term.
Who is eligible for the "Trump Accounts"?
Eligible participants are minors born between 2025 and 2028 who are U.S. citizens with valid Social Security numbers.
How can families contribute to these accounts?
Families can contribute up to $5,000 annually, with additional contributions possible from employers or charitable organizations, up to specified limits.
When can contributions begin?
Contributions to the "Trump Accounts" can start on July 4, 2026, coinciding with the 250th anniversary of American independence.