By Ginika Igboke
Treasury Secretary Scott Bessent has outlined new details of the administration-backed “Trump Accounts” program, which would allow investment accounts to be created for U.S. children.
Speaking on Dec. 17, Bessent said parents of children born this year and in the coming years would enroll in the program by selecting the option on a newly created IRS form when filing their taxes. Once selected, a financial institution would automatically open and manage the account.
“To claim this investment, most families need merely to check a box on Form 4547,” Bessent said, referring to the IRS form.
The accounts would be available to American children born between Jan. 1, 2025, and Dec. 31, 2028. Each eligible child would receive an initial $1,000 deposit to be invested in a fund, with parents allowed to contribute up to $5,000 annually.
Bessent said the initial $1,000 investment could grow substantially over time, citing historical market performance. He noted that the S&P 500 has averaged annual growth of about 10.5 percent since the 1950s. “A single $1,000 deposit into a Trump account at birth will grow to nearly $674,000 by the age of retirement,” he said.
“Trump accounts are the president’s gift to the American people. They represent perhaps the most groundbreaking policy innovation of modern times,” Bessent added. “They are shaped by a very simple vision: ‘Every American a shareholder.’ When every American owns a share of the most powerful economy on earth, every American will benefit from our nation’s growth.”
The Treasury Department has not yet launched the program. Bessent said the accounts are expected to take effect on July 4 of next year.
Several wealthy Americans and institutions have pledged donations to support the accounts. The latest contributors include billionaire investor Ray Dalio and his wife, Barbara, as well as billionaires Michael and Susan Dell.
Dalio said he and his wife plan to commit $250 to between 250,000 and 300,000 children under age 10 in Connecticut who live in ZIP codes with median household incomes below $150,000. Dalio, the founder of Bridgewater Associates, lives in the state.
“I have been fortunate to live the American Dream. At an early age I was exposed to the stock market, and it changed my life,” Dalio said in a statement, adding that the accounts could help put children on a path toward financial independence.
Earlier this month, the Dells pledged to invest $250 in the accounts of 25 million children aged 10 and under who live in ZIP codes nationwide with similar median income levels.
The Trump Accounts are part of a broader economic agenda promoted by President Donald Trump’s administration, which includes tax cuts, tariffs, and increased foreign investment in the United States. In recent days, Trump and Bessent have emphasized the administration’s economic messaging, with Trump announcing on Dec. 17 that he plans to introduce a “warrior dividend” providing $1,776 bonuses to soldiers.
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