Trump Accounts program enrolls millions of U.S. children in federal seed investment

The Treasury and Social Security Administration have launched the Trump Accounts program, a tax‑advantaged savings account for children born between January 2025 and December 2028. Each eligible child receives a one‑time $1,000 government contribution, and families may add up to $5,000 per year, with employers and charities also allowed to contribute. Funds must be invested in low‑cost U.S. equity index funds and cannot be withdrawn until the child turns 18, at which point the account converts to a traditional IRA.

Within days of the launch on July 6 2026, timed with America’s 250th anniversary, more than six million children were enrolled. The Social Security Administration is adding automatic enrollment prompts to birth‑registration forms to streamline future sign‑ups. Private donors have pledged additional money, including Michael Dell’s multibillion‑dollar commitment to boost balances for low‑income children.

The program has become a partisan flashpoint: Republican leaders tout it as a way to give the next generation a financial head start and counter socialist sentiment, while Democratic officials such as Rep. Bennie Thompson have urged families to reject the accounts, arguing they lock families into a government‑linked wealth‑building scheme.