Nearly 70 million children now have Trump Accounts established in their names, and the Social Security Administration is expanding access to the program by providing parents with instructions to claim the accounts and obtain a $1,000 federal investment contribution for eligible newborns.
By yourNEWS Media Newsroom
Parents receiving Social Security cards for their newborn children will now receive additional information explaining how to activate a federally established investment account and obtain a one-time $1,000 government contribution, under a new initiative announced by the Social Security Administration on Tuesday, Oct. 20.
The change connects the federal government’s existing birth registration system with Trump Accounts, a tax-advantaged investment program created to help American children accumulate financial assets before adulthood. The accounts are designed to hold investments over many years, with contributions from families, employers and other eligible sources supplementing an initial government deposit for qualifying children.
According to the Social Security Administration’s October 20 announcement, nearly 70 million accounts have been opened for eligible children nationwide, while approximately 26 million have already received contributions. The figures include accounts that parents and legal guardians have not yet claimed or activated.
The new enrollment information will accompany Social Security cards issued through the Enumeration at Birth program, which allows parents to request a Social Security number for their child as part of the birth registration process.
SSA Commissioner Frank J. Bisignano said the initiative is intended to make it easier for families to begin participating in the investment program without having to search independently for enrollment instructions.
“Social Security is providing families with the tools to get started right away on this generational opportunity to build a strong financial foundation for their children’s future,” Bisignano said.
The additional information explains how parents or guardians can claim an account, complete the necessary activation procedures and receive the federal contribution if their child meets the eligibility requirements.
Children who are U.S. citizens and were born between Jan. 1, 2025, and Dec. 31, 2028, may qualify for the one-time $1,000 deposit. The child must have a valid Social Security number, and an authorized individual must make the required election to receive the contribution.
The broader Trump Accounts program is available to children under 18 who have been issued Social Security numbers, but eligibility for an account does not automatically establish eligibility for the federal deposit.
Families with children born outside the designated four-year period may still be able to establish accounts and make permitted contributions, even though those children do not qualify for the initial $1,000 government payment.
The distinction is important because the program includes both the account itself and a separate federal contribution available only to children meeting the statutory requirements.
The newly distributed insert directs parents to the official Trump Accounts website, where they can download the program’s mobile application and begin the enrollment process.
After signing up, parents or guardians must follow instructions from the Treasury Department concerning account activation. Eligible families can then complete the necessary steps to obtain the federal deposit and manage the child’s investments.
The application is available without charge through the Apple App Store and Google Play.
The Social Security Administration is coordinating with the Treasury Department to distribute the information through its existing newborn identification system, eliminating the need to establish a separate mailing process for families receiving their children’s first Social Security cards.
Under Enumeration at Birth, parents can request a Social Security number while completing the documentation associated with a child’s birth. State vital statistics agencies transmit registration information electronically to SSA, which assigns the number and mails the corresponding card.
The addition of Trump Account instructions uses that established process to reach families shortly after a child is born, when parents are already completing financial, insurance and identification arrangements.
Participation is not automatic merely because a family receives the insert. Parents or other authorized individuals must still claim the account and complete the required election to receive the $1,000 contribution.
SSA said some accounts have already received money from donors even though the responsible parent or guardian has not yet claimed them.
“Contributions have already been made to some unclaimed Trump Accounts by generous donors,” the agency said. “To date, 26 million accounts have already received contributions.”
The nearly 70 million accounts established nationwide represent a substantial expansion of the program, which is intended to make long-term investment opportunities available to children across different household income levels.
Trump Accounts were created under the federal tax legislation enacted in 2025, commonly known as the One Big Beautiful Bill Act or the Working Families Tax Cuts.
The program establishes a specialized form of individual retirement account with restrictions governing investments, contributions and withdrawals during childhood.
Once established, an account belongs to the child, while a parent, guardian or other authorized responsible party manages it during the years before the beneficiary reaches adulthood.
The program is structured around long-term investment growth rather than immediate access to government benefits.
Families may make additional contributions, subject to annual limits, and those funds are invested in qualifying stock market index funds. Investment earnings can accumulate within the account over time under the applicable tax rules.
The standard annual contribution limit is $5,000, subject to inflation adjustments. Contributions from eligible family members, friends and other individuals generally count toward that limit.
Employers may also contribute through qualifying programs, with separate provisions governing the tax treatment of those payments. Federal regulations issued in August describe arrangements allowing employers to make contributions of up to $2,500 annually for employees or their dependents under applicable requirements.
The $1,000 federal deposit is treated separately from ordinary annual contributions, allowing eligible children to receive the government investment without reducing the amount that families may otherwise contribute.
Additional qualified contributions from governments and nonprofit organizations may also be permitted under special rules.
The distinction between ordinary contributions and special qualifying contributions is part of the program’s effort to accommodate both household savings and broader funding initiatives.
The account’s investment structure is deliberately more restrictive than that of a conventional brokerage account.
During childhood, Trump Account funds generally must be invested in mutual funds or exchange-traded funds tracking broad indexes composed primarily of American companies.
The rules are intended to provide exposure to a diversified collection of stocks rather than allowing account holders to concentrate their investments in individual companies or highly specialized sectors.
The Treasury Department and Internal Revenue Service outlined those requirements in proposed regulations issued Aug. 20.
Under the proposal, eligible funds must track a qualifying index, avoid leverage and maintain annual investment fees and expenses of no more than 0.1% of the amount invested.
A qualifying index generally must consist primarily of U.S. equities. The S&P 500 is specifically permitted, along with other broad indexes that satisfy the statutory criteria.
Funds focused on individual industries or sectors are excluded, preventing investments that concentrate an account’s assets in narrowly defined portions of the market.
The restrictions also prohibit leveraged investment products, which attempt to amplify market movements and can expose investors to additional volatility and risk.
Treasury officials have emphasized that controlling fund expenses is especially important when money may remain invested for decades.
Unlike a short-term savings arrangement, a Trump Account can accumulate investment returns over a substantial portion of the beneficiary’s life. Because fund expenses reduce the amount remaining invested, even relatively small annual differences can affect the balance available in later years.
Bisignano previously explained the importance of limiting fees when the investment regulations were proposed.
“For a child investing over decades, even small differences in annual costs may have a meaningful effect on the amount available in adulthood,” he said.
“By emphasizing low-cost index investing, the proposed rules seek to maximize the share of investment returns that remains in each child’s account.”
The proposed investment regulations were published in the Federal Register on Aug. 21, with a public comment period ending Oct. 20.
The rules address how qualifying funds are identified, the responsibilities of account trustees and the procedures used to ensure investments remain within federal requirements.
They also establish how funds must be managed during the account’s designated growth period, which continues through Dec. 31 of the calendar year in which the child turns 17.
During that period, ordinary withdrawals are generally prohibited, reinforcing the program’s focus on accumulating assets rather than financing immediate household expenses.
Once the growth period ends, most of the special investment restrictions cease to apply, and the account becomes subject to rules governing traditional individual retirement accounts.
Although the beneficiary gains control of the funds in adulthood, the account does not become an unrestricted checking or savings account at age 18. Distributions remain subject to applicable retirement account rules, including potential taxes and penalties depending on the circumstances.
Federal officials have described the program as a way for children to begin investing years before they would ordinarily establish retirement accounts through employment.
The Treasury Department has also selected a default investment designed to provide broad exposure to major publicly traded American companies.
In a July 1 announcement outlining the investment lineup, Treasury identified the State Street SPDR Portfolio S&P 500 ETF, traded under the ticker SPYM, as the default fund for Trump Accounts.
The ETF tracks the S&P 500, an index representing large publicly traded U.S. companies across a range of industries.
Treasury also identified four additional low-cost funds that account custodians would eventually be able to select: the iShares Core S&P 500 ETF, Vanguard Total Stock Market ETF, State Street SPDR Portfolio S&P 1500 Composite Stock Market ETF and iShares Core S&P Total U.S. Stock Market ETF.
Those alternatives provide exposure to different combinations of large, medium-sized and smaller American companies, depending on the index being tracked.
The department said the additional investment options would become available as the program’s account management capabilities expanded.
Until families can select among the additional funds, contributions are directed to the designated default investment.
All five announced funds emphasize broad stock market exposure and relatively low operating expenses.
The approach is intended to avoid the higher costs and investment concentration that can accompany actively managed or specialized investment products.
Nevertheless, stock market investments are subject to fluctuations, and Trump Accounts do not guarantee positive returns or preservation of the original amount invested.
A child’s balance may rise or fall as financial markets change, even when the money is invested in diversified index funds.
Long investment horizons can provide time for markets to recover from declines, but they do not eliminate investment risk.
The program’s tax treatment also differs from that of conventional bank savings accounts. Contributions, accumulated earnings and eventual withdrawals are governed by federal tax provisions that depend on the source of the funds and the beneficiary’s circumstances.
Parents evaluating the accounts therefore must consider contribution limits, investment restrictions and future distribution rules rather than treating the program as an ordinary cash savings arrangement.
The new Social Security insert is intended to make those initial steps easier by connecting parents directly with Treasury’s enrollment platform.
Federal officials have characterized the $1,000 contribution as an opportunity to give eligible children an investment balance at the beginning of their lives, with the possibility of additional growth through private contributions.
The initiative also allows extended family members and other eligible contributors to help build an account that remains associated with the child.
SSA’s participation represents an expansion of its administrative role in facilitating access to the program, although the Treasury Department oversees the accounts and their investment framework.
The agency will continue issuing Social Security cards through established procedures while including the additional Trump Account information for newborns enrolled through Enumeration at Birth.
For families whose children qualify for the federal deposit, the enrollment process begins with the child’s Social Security number and the claim procedures described in the insert.
The Treasury Department then provides instructions for activating the account and obtaining the applicable contribution.
The program’s early enrollment figures indicate that millions of children already have accounts established in their names, but the number of accounts receiving contributions remains substantially lower than the overall total.
That gap is one reason federal officials are emphasizing activation instructions and communication with parents.
As the program expands, Treasury and the IRS are continuing to develop regulations covering investments, contributions and administrative procedures.
The latest SSA announcement adds another mechanism for reaching families at the beginning of a child’s life, placing instructions for accessing the investment program alongside one of the first federal identification documents many Americans receive.
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