President Donald Trump said Wednesday that every eligible U.S. minor has now been automatically enrolled in a Trump Account, expanding the government-backed investment program to more than 60 million children.
By yourNEWS Media Newsroom.
President Donald Trump announced Wednesday that the federal government has completed automatic enrollment of eligible children in Trump Accounts, expanding the investment program from millions of early participants to more than 60 million minors nationwide.
WATCH:
“Today, I’m pleased to announce that every single eligible minor child in America has now been automatically enrolled in a Trump Account,” Trump said in the Oval Office.
The Treasury Department had announced Oct. 1 that automatic enrollment was complete, saying every eligible child under 18 with a valid Social Security number now has an account ready to be claimed by a parent or guardian.
Trump Accounts are tax-advantaged investment accounts established under legislation enacted during Trump’s second term. The accounts are intended to give children an investment vehicle that can receive money from families, employers, philanthropists and, for some children, the federal government.
The administration officially launched the program in July. More than 6 million accounts had already been requested by families before Treasury moved to automatic enrollment.
Automatic enrollment does not mean parents immediately control the account.
A parent or legal guardian must claim the account, verify their identity and relationship to the child and accept the account terms before managing it or allowing contributions from family members, friends or employers, according to Treasury.
Children born between Jan. 1, 2025, and Dec. 31, 2028, are eligible for a one-time $1,000 federal seed contribution.
That Treasury payment is not automatically deposited merely because an account has been created. The parent or guardian must claim the account for an eligible child to receive the $1,000 government contribution.
Treasury Secretary Scott Bessent said the automatic-enrollment policy was designed to ensure families who did not initially sign up would still have an investment account established for their children.
“With automatic enrollment, over 60 million more eligible children now have an account ready to be claimed,” Bessent said. “This is a transformative milestone in the Trump Administration’s effort to give every American child the opportunity to build generational wealth and jump-start their financial future.”
The accounts can also receive private contributions.
Michael and Susan Dell have pledged $6.25 billion to provide $250 contributions to 25 million children, one of the largest philanthropic commitments associated with the program. The contribution was designed primarily to reach children who are not covered by the federal government’s $1,000 newborn seed payment.
The administration has also encouraged businesses to contribute to Trump Accounts for employees’ children. More than 50 companies had committed to participating by the program’s July launch, according to the White House.
The accounts generally invest contributions in financial markets, with the goal of allowing the money to compound during childhood.
Trump has promoted the program as a way to give young Americans a direct financial stake in U.S. economic growth.
“Every one of our kids is now going to be an owner of the biggest producers in our country,” Trump said when the program formally launched in July.
Treasury’s latest rules substantially broadened the reach of the program by moving from a largely voluntary signup system to automatic account creation.
The department has also expanded the types of contributions that can be directed toward accounts, including philanthropic gifts intended for defined groups of children.
When account holders reach adulthood, the accounts transition into a structure similar to an individual retirement account, subject to applicable federal rules governing distributions and taxation.
The automatic-enrollment announcement means that parents no longer need to initiate the creation of an account for an eligible child.
They still must claim it, however, before managing the investments or receiving certain contributions.
For children born during the 2025-2028 federal seed period, that additional step is also necessary to receive the government’s $1,000 contribution.
The administration says the goal is to turn the accounts into a nationwide system of long-term investment for children, combining federal seed money, family savings and private philanthropy.
With the latest Treasury action, more than 60 million children now have accounts established in their names, making the next stage of the program dependent on how many families claim them and how much public and private money ultimately flows into those investments.
Original article
Comments