- A government-managed investment program dubbed Trump Accounts being launched on Independence Day.
- American children born during President Donal Trump's second term are eligible to receive $1,000 to seed their savings account.
- Trump Accounts is being implemented at a time when many young American families are facing financial challenges.
Babies born in the United States on Independence Day won’t be uttering their first words or taking their first steps for several months.
But even before leaving maternity wards, those newborns can have some skin in the stock market.
Call them Yankee Doodle Infant Investors.
On Saturday, July 4, the Trump administration plans to commemorate the nation’s 250th birthday by launching Trump Accounts — a savings account for American kids designed to help them invest money for college or other “qualified expenses” such as purchasing a first home or starting a business.
Under the new savings program, every American child arriving on Independence Day 2026 — along with kids born during Trump’s second term (Jan. 1, 2025 through Dec. 31, 2028) — will be eligible to receive $1,000 from the Treasury Department, via Trump Accounts.
The tax-advantaged investment account will be in the child’s name, but parents or guardians will function as account custodians until the child-investor turns 18.
Parents won’t be required to contribute to the account, but they can if they choose. Families, friends and employers can contribute $5,000 per year, combined, to a child’s account to accelerate growth.
The Trump Accounts’ $1,000 seed money is limited to babies born during Trump’s second administration, but all U.S. children under 18 with a valid Social Security are eligible to open a Trump Account.
“This is a pro-family initiative that will help millions of Americans harness the strength of our economy to lift up the next generation,” wrote Trump. “And they’ll really be getting a big jump on life.”
Cash donated to Trump Accounts funds will be invested in a diversified investment vehicle “designed to maximize long-term growth while minimizing risk,” according to the Trump Accounts site.
“When parents contribute to their child’s account, the money will automatically be invested in the lowest-cost S&P 500 index fund available today,” said a senior Treasury official during a Thursday media call.
Individual savings funds can be withdrawn without penalty from Trump Accounts when the child turns 18 “for qualified expenses like education, a first home purchase or starting a business.” Withdrawals would be taxed at ordinary income rates — and withdrawals may be subject to restrictions, the site added.
As of Thursday, more than 6 million accounts have been requested prior to the official Independence Day launch — including 1.4 million accounts for children who will be eligible for the initial $1,000 Trump Accounts seed contribution from the Treasury.
Trump Accounts is being launched at an economically shaky moment where American families are absorbing rising inflation and grocery costs, along with gas pump volatility.
Meanwhile, noted The Associated Press, many Americans are bracing for changes to social safety net programs like Medicaid and the Supplemental Nutrition Assistance Program, or SNAP, which were cut under the same legislation that created Trump Accounts.
And even with the contribution from the government, critics say Trump Accounts will widen the wealth gap.
Affluent families, they argue, can afford to make the maximum pretax contribution to the accounts and will realize the greatest benefits. Poor families that can’t afford to set aside money for the accounts will benefit the least.
Assuming a 7% annual return, the $1,000 in seed money would grow to roughly $3,570 over 18 years.
How to open a Trump Account
Parents or guardians can open a Trump Account for eligible children using IRS Form 4547. That can be done by moms and dads when they file their taxes — or by submitting the form through the IRS Individual Online Accounts website.
They can manage the account by downloading the Trump Account mobile app or through the TrumpAccount.com website.
The Trump administration wants kids to take ownership of the program by frequently viewing their personal account balance and contributions — and by tracking their account savings and growth over time.
Once the child turns 18, he or she can take full control of the account. And yes, child “investors” can contribute to their own Trump Account.
Calls for support from companies and philanthropists
Corporations and philanthropists are being encouraged to participate in Trump Accounts.
Employers, for example, can contribute to the Trump Accounts of their workers or their workers’ children. Corporations can also make tax-deductible contributions to Trump Accounts on behalf of their employees’ children.
Meanwhile, philanthropists and local governments can contribute to Trump Accounts of all children in a state or qualified geographic area, according to the account website.
The accounts have already gotten a boost from billionaires beyond the $1,000 for eligible children from the government, The Associated Press reported.
Michael Dell, the founder of Dell Technologies, and his wife, Susan, pledged to give $6.25 billion to the accounts of some kids who don’t qualify for the government’s $1,000. And on Wednesday, Trump announced on Truth Social that Sanjay Mehrotra, CEO of Micron Technology, would give $250 million.
Several major companies also plan to add Trump Account contributions to their benefits packages, including Uber, Intel, IBM, Nvidia and Steak ‘n Shake, according to the Associated Press.
The Trump administration has encouraged such donations through what U.S. Treasury Secretary Scott Bessent calls the “50 State Challenge.”
The Treasury Department said on Thursday that it will accept large philanthropic contributions of readily tradable public company stock to support Trump Accounts.
“Today’s announcement makes it easier for philanthropists to help American children build long-term financial security,” said Bessent in a department release. “By accepting contributions of publicly traded stock, Treasury is creating a practical pathway for large-scale private giving to support the next generation.”
Trump Accounts proponents say more Americans, including children, will now have access to the stock market — bolstering capitalism when openly socialist candidates are growing more popular.
“The answer to more socialism is more capitalism,” said Trump Accounts investor Brad Gerstner in an Associated Press report. “This makes every child in America a capitalist from birth.”
About 58% of U.S. households held stocks or bonds in 2022, according to the U.S. Securities and Exchange Commission, though the wealthiest 1% owned almost half the value of stocks in that year.