Trump launches ‘Trump Accounts’ investment programme for children

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Key points

• The Trump administration has launched the Trump Accounts programme to encourage long-term savings and investing among American children.
• Eligible U.S. citizens born between 2025 and 2028 will receive a government-funded investment account seeded with 1,000 dollars.
• Families, employers and charitable organisations can contribute up to 5,000 dollars annually to the accounts.
• Several major companies, including Visa, Dell, Comcast and Micron, have pledged support for the initiative.

Main story

The administration of President Donald Trump has launched its flagship child investment initiative, Trump Accounts, as part of activities marking the 250th anniversary of U.S. independence.

The programme is designed to promote long-term investing and financial literacy by providing eligible children with a government-funded investment account at birth.

Under the initiative, every U.S. citizen born between 2025 and 2028 will receive an initial federal contribution of 1,000 dollars into an investment account, while families, employers and charitable organisations can make additional annual contributions of up to 5,000 dollars on a pre-tax basis.

The accounts will be administered by the U.S. Treasury Department, with brokerage firm Robinhood and custodian bank BNY managing investment operations.

According to the administration, contributions will automatically be invested in low-cost index funds to encourage long-term wealth creation.

Speaking on the initiative, Andy Blocker, Head of Policy, Regulatory and Government Relations at Edward Jones, said the programme addresses one of the biggest barriers preventing families from investing.

“The 1,000-dollar federal contribution at birth helps remove the barrier of having nothing to start with, which has historically been one of the biggest obstacles to saving.

“If by year-end more families have a clear onramp to begin saving and investing for their children’s financial futures, that’s success,” he said.

Several major American companies have pledged support for the programme through employer matching contributions or additional funding.

The participating firms include Visa, Dell and Comcast, while semiconductor manufacturer Micron recently announced a 250 million-dollar commitment to support the initiative.

The launch comes as rising living costs continue to dominate public debate ahead of the U.S. midterm elections, with policymakers increasingly promoting measures aimed at improving household financial security and long-term wealth creation.

According to provisional data from the U.S. Centers for Disease Control and Prevention (CDC), about 3.6 million children were born in the United States in 2025.

Although only children born during Trump’s second administration qualify for the automatic 1,000-dollar government contribution, parents or guardians of any American child under 18 with a valid Social Security number can open a Trump Account.

The Treasury Department has advised families to remain vigilant against fraud and scams targeting participants and has issued guidance on identifying fraudulent activities.

Participants will be able to withdraw or continue investing the funds after turning 18, with investment gains taxed upon withdrawal.

According to projections published on the programme’s website, annual contributions of 5,000 dollars, combined with historical average returns of the S&P 500 Index, could grow to approximately 271,000 dollars by age 18.

If the same contribution level continues until age 55, the account could grow to about 13 million dollars, although actual investment returns will depend on market performance.

At launch, all contributions will be invested in the State Street SPDR Portfolio S&P 500 ETF, with additional investment options from BlackRock and Vanguard also available.

Steve Quirk, Chief Brokerage Officer at Robinhood, said the programme was designed to encourage wider participation in long-term investing.

“The thesis behind Trump Accounts is to have more people participate in the greatest wealth creation vehicle on the planet, which is the U.S. market,” Quirk said.

The issues

The Trump Accounts programme represents the administration’s latest effort to encourage long-term household wealth creation through financial markets. It also reflects growing bipartisan interest in policies that promote savings from childhood, although debate is expected over the programme’s cost, eligibility criteria and long-term effectiveness.

What’s being said

“The 1,000-dollar federal contribution at birth helps remove the barrier of having nothing to start with.” — Andy Blocker, Edward Jones.

“The thesis behind Trump Accounts is to have more people participate in the greatest wealth creation vehicle on the planet, which is the U.S. market.” — Steve Quirk, Robinhood.

What’s next

The Treasury Department is expected to oversee the nationwide rollout of the programme, while participating financial institutions begin opening accounts and implementing contribution mechanisms for eligible families.

Bottom line

The Trump administration has launched a government-backed investment programme aimed at helping American children build long-term wealth, with federal seed funding, private-sector support and tax-advantaged contributions forming the foundation of the initiative.