Trump Accounts program launches with millions of child enrollments

The federal "Trump Accounts" savings program for children went live on July 4. Within weeks, more than 6.5 million accounts had been opened for children under 18, and over 1.5 million of those are eligible for a one‑time $1,000 federal seed contribution for newborns born between 2025 and 2028. The accounts function like IRA‑style investment vehicles: contributions are made with after‑tax dollars, earnings grow tax‑deferred, and withdrawals are taxed as ordinary income when the child turns 18. A parent, guardian or other authorized adult serves as custodian until the child reaches adulthood. Eligibility requires U.S. citizenship, a valid Social Security number, and the child must be under 18 at the end of the year the account is opened. Enrollment is done by submitting Form 4547, and the Social Security Administration is automating enrollment for newborns during the birth‑registration process. Contributions can also come from family members, employers (up to $2,500 per employee per year), qualified nonprofits and philanthropists; notable pledges include $250 seed contributions from foundations of Michael Dell and Ray Dalio. While the program has attracted significant attention, some analysts warn that recent government‑wide staffing cuts could limit outreach and support for families trying to enroll, a concern dismissed by White House officials who say enrollment can be completed online without direct assistance.