Government launches “Trump Accounts” with $1,000 — How they work and who benefits

• The government officially launched the Trump Accounts as a new investment program for children.
• It may transform families’ ability to save with contributions from the government, employers, and donors.
• Next steps: account openings beginning in 2026 and new Treasury instructions.

Trump officially introduced a national investment-account program for minors under 18, aimed at helping them build capital from their earliest years.

Eligible children will receive an initial contribution from the Treasury, and families will be able to add annual funds.

The measure seeks to strengthen the future financial stability of minors and expand access to simple, easy-to-manage savings tools.

How the Trump Accounts operate

The Trump Accounts are investment instruments created under the One Big Beautiful Bill.

• They are designed for any U.S. minor under 18, and accounts may be opened beginning in early 2026.
• Families may begin contributing starting July 4 of the same year.

The program offers a major initial advantage: children born between 2025 and 2028 will receive $1,000 from the Treasury as a pilot deposit.

In addition, parents may contribute up to $5,000 per year, while employers may add up to $2,500 annually, without affecting the worker’s taxable income.

Investments must be placed in mutual funds or ETFs that track the S&P 500 or other indexes composed primarily of U.S. stocks.

The goal is to generate sustained long-term growth.

How to open a Trump Account

Parents or guardians must set up and manage the account until the minor turns 18.

The Treasury Department and IRS indicated that IRS Form 4547 must be used to open the account and request the $1,000 contribution when applicable.

The Treasury will send instructions in May 2026 to those who have applied for government-funded accounts.

Funds cannot be withdrawn before the year the minor turns 18, at which point the account will function as a traditional IRA subject to standard rules.

Savings projections for children

The Council of Economic Advisers estimated that, under average market returns, a baby born in 2026 could accumulate $303,800 by age 18 and $1,091,900 by age 28 if maximum contributions are made.

Without additional contributions, the accounts would be far smaller: $5,800 by age 18 and $18,100 by age 28.

This potential makes the program a children’s savings tool capable of boosting future economic mobility, especially for households that have traditionally lacked access to investment instruments.

The historic Dell donation

Trump celebrated a historic $6.25 billion donation from Michael and Susan Dell to fund Trump Accounts on a large scale.

This Giving Tuesday, in honor of America’s 250th birthday, the Dell family is giving 25 MILLION American children a powerful start: a personal investment in their TRUMP ACCOUNTS, creating hope and prosperity for generations to come. 🇺🇸 pic.twitter.com/UpOQmg0CKD

— The White House (@WhiteHouse) December 3, 2025

According to the White House, this contribution will accelerate the goal of giving every newborn a stronger financial foundation.

The administration emphasized that, with full funding and no withdrawals, a minor could accumulate up to $1.9 million by age 28, based on internal estimates and maximum possible contributions.

What comes next

Families will be able to open Trump accounts in early 2026.

The challenge will be preparing documentation, confirming eligibility, and understanding how to properly manage the account to maximize its long-term value.

The program promises to generate significant savings for millions of minors, including many Latino children who will gain access to long-term investment opportunities for the first time.