White House Promotes ‘Trump Accounts’ as Signature Effort to Boost Family Wealth and Economic Opportunity

BY EMMANUEL OGBONNA

The Trump administration is intensifying its push to showcase a new child investment program as evidence of its focus on affordability and long-term economic growth, with senior officials this week highlighting the upcoming rollout of what are known as Trump Accounts.

Created under President Donald Trump’s tax legislation, the program is designed to provide a $1,000 government-funded investment for every qualifying newborn, provided a parent opens an account on the child’s behalf. The money is invested in the stock market through private financial firms and cannot be accessed until the child turns 18, when it may be used for limited purposes such as higher education expenses, starting a business, or making a down payment on a home.

The U.S. Treasury Department marked the initiative’s launch with a high-profile event Wednesday that brought together elected officials, business leaders and celebrities, underscoring the administration’s effort to frame the accounts as a transformative tool for expanding wealth-building opportunities. Among those attending were Texas Republican Sen. Ted Cruz, rapper Nicki Minaj and Kevin O’Leary, a venture capitalist and television personality known for his role on NBC’s “Shark Tank.”

Supporters of the program argue that Trump Accounts offer a way to give children—particularly those from low-income households—a financial foundation that could grow substantially over time. Speaking at the event, Trump said the initiative is meant to ensure young Americans begin adulthood with assets rather than debt.

“Every president in modern history has left our children with nothing but debt,” Trump said. “But under this administration, we’re going to leave every child with real assets and a shot at financial freedom.”

Trump also urged employers nationwide to participate by offering matching contributions as part of their benefits packages, noting that several major companies have already committed to doing so. The administration says such partnerships could significantly increase the value of the accounts by the time beneficiaries reach adulthood.

Under the program’s rules, once a parent opens an account, the Treasury Department will deposit $1,000 for eligible newborns. The funds must be invested in U.S. equity index funds that track the broader stock market and charge no more than 0.10% in annual fees. While private banks and brokerages will manage the accounts, investment options are tightly regulated to limit risk and keep costs low.

Parents are allowed to contribute up to $2,500 a year in pretax income, similar to retirement savings plans. Additional contributions can come from employers, relatives, friends, state or local governments and philanthropic organizations. Total annual contributions are capped at $5,000, though donations from governments and charities do not count toward that limit.

The $1,000 government seed money is reserved for children born during Trump’s current term. To qualify, a child must be a U.S. citizen, have a Social Security number, and be born between Jan. 1, 2025, and Dec. 31, 2028. Parents of any immigration status may open accounts for qualifying children. While parents of older children are encouraged to open accounts, those children are not eligible for the initial Treasury contribution.

The administration has emphasized that Trump Accounts are intended as long-term investments rather than a form of immediate assistance. Children generally cannot access the funds until age 18, and withdrawals will be subject to taxes. As a result, the accounts will not help families cover early childhood expenses, a point critics frequently raise.

In an effort to broaden the program’s reach, several wealthy donors have pledged their own funds to provide smaller seed contributions for children who do not qualify for the $1,000 Treasury deposit. In December, Michael and Susan Dell announced a $6.25 billion donation that will provide $250 to some children aged 10 and under who live in ZIP codes with median family incomes of $150,000 or less. Those children would otherwise receive no government seed money.

Shortly afterward, hedge fund founder Ray Dalio and his wife, Barbara, pledged $75 million to support similar contributions for children under 10 in Connecticut, potentially benefiting about 300,000 kids. At Wednesday’s Treasury event, Trump announced that investor Brad Gerstner had committed to donating $250 for every child under five in Indiana.

Several large corporations, including Uber, Intel, IBM, Nvidia and Steak ’n Shake, have also said they plan to incorporate Trump Account contributions into their employee benefits. Treasury Secretary Scott Bessent has promoted these efforts through what he calls the “50 State Challenge,” encouraging companies and donors to expand participation nationwide.

Although the accounts will not accept contributions until July 2026, parents of eligible children can begin the registration process now. According to the administration, parents may sign up using an Internal Revenue Service form when filing their taxes this year or through an online portal expected to launch this summer. Registration is required for a child to receive any government or donor contributions, and parents who enroll by May will receive additional instructions on completing the process.

Backers say the broader goal of Trump Accounts is to expand access to the stock market and foster a culture of ownership, even for children born into poverty. Supporters argue that the program strengthens free-market principles at a time when more progressive economic ideas have gained traction.

“The answer to more socialism is more capitalism,” Gerstner said at the event. “This makes every child in America a capitalist from birth.”

According to federal data, about 58% of U.S. households owned stocks or bonds in 2022, though wealth remains heavily concentrated, with the top 1% holding nearly half the total value of stocks.

The program bears some resemblance to so-called “baby bond” initiatives launched or considered by states such as California, Connecticut and Maryland, as well as the District of Columbia. Those programs, however, are typically targeted at children growing up in poverty, foster care, or families affected by the COVID-19 pandemic, and are managed by state governments rather than private firms.

Critics of Trump Accounts argue that the program does little to address the immediate needs of young children, when families are most likely to face financial hardship. They also contend that the accounts fail to offset reductions in other social programs, such as food assistance and Medicaid, that were enacted alongside the tax legislation that created the accounts.

Others warn that the initiative could ultimately widen the wealth gap. Families with higher incomes are far more likely to contribute the maximum amount each year, allowing their children’s accounts to grow substantially larger than those of children whose parents cannot afford to contribute. Even assuming a 7% annual return, the government’s $1,000 seed deposit would grow to roughly $3,570 over 18 years, a modest sum compared with what affluent families could accumulate through regular contributions.

Despite those criticisms, the administration has positioned Trump Accounts as a central pillar of its economic message, arguing that the program represents a long-term investment in the next generation and a reimagining of how government can promote opportunity through the private market.