US government to provide $1,000 seed capital for children via stock accounts

The United States government is implementing a program known as ‘Trump Accounts’ to provide $1,000 in seed capital for children born between 2025 and 2028. Rather than a standard cash transfer, these funds are deposited into child stock accounts designed to foster early financial literacy.

Under this model, the money is automatically invested in diversified funds or ETFs that track major American stock indices, such as the S&P 500. While the investment carries market risk—meaning the balance could fluctuate above or below the initial $1,000—the goal is to build long-term wealth for the child by the time they reach adulthood.

The program utilizes an opt-in mechanism. While accounts for over 60 million children have been initiated, parents must actively register and activate the accounts to trigger the transfer of funds. Once active, the capital remains in prescribed diversified funds and cannot be withdrawn during the growth phase.