New Investment Accounts for Children Launched Under Trump's Legislation
Overview of the New Initiative
According to Scott Bessent, the US Treasury Secretary, over five million children have signed up for newly established tax-deferred investment accounts as part of recent legislation introduced by Donald Trump. During his address at CNBC's Invest in America Forum, Bessent noted that approximately 1.2 million of these children qualify for a $1,000 government contribution through a pilot program.
This initiative, commonly known as "Trump Accounts," is part of the president's "big beautiful bill" and is scheduled to officially commence on July 4. All children in the US under 18 with a Social Security number can open an account, but the $1,000 Treasury-funded deposit is exclusively available for those born between 2025 and 2028. Bessent emphasized that the $1,000 is merely the initial contribution.
Several companies have committed to matching the government's contribution, and philanthropists across various states have pledged to fund accounts for eligible families. Michael Dell, who has previously promised $6.25 billion to support this initiative, mentioned that additional commitments are anticipated. He stated, "We have others joining us," during the event.
Dell elaborated on how contributions could originate from diverse sources, including charities and local governments. He suggested that individuals could sponsor a specific zip code, a school district, or even a few children in their community. Some local programs are also contemplating incentives linked to community service or academic performance, with one city discussing adding funds to accounts for students involved in community service or achieving good grades.
The accounts are structured to accept contributions from various sources and serve as a long-term investment vehicle. The Bank of New York Mellon will oversee the initial accounts and has collaborated with the trading platform Robinhood to create a specialized application. Dell remarked, "It essentially becomes a platform for investing and educating children about capital and capitalism."
The 2026 tax season will mark the first chance for families to open these accounts and claim the Treasury's $1,000 contribution by submitting IRS Form 4547 with their 2025 tax returns. Shortly after a 30-second Super Bowl advertisement promoting the initiative, the official website began accepting online applications.
This program is part of a larger strategy aimed at fostering long-term savings and investment habits among younger Americans.