U.S. Treasury automatically enrolls 60 million children in Trump Accounts

Trump Accounts automatic enrollment U.S. Treasury Department child investment accounts tax-deferred savings

The U.S. Treasury Department has implemented automatic enrollment for more than 60 million children into 'Trump Accounts,' a tax-deferred investment program. This move follows low participation rates under the previous opt-in system, where only about 5% of low- and moderate-income families had successfully opened accounts.

Under the new regulations, which began on October 1, every eligible child under 18 with a valid Social Security number has an account waiting for them. To access and manage these funds, parents or legal guardians must claim the accounts through an official application. The program includes a $1,000 government contribution for children born between January 1, 2025, and December 31, 2028.

Once account holders reach age 18, they can withdraw funds with tax incentives for specific uses, such as higher education, home down payments, or starting a small business. However, higher tax burdens may apply if funds are used for other purposes. Analysts from the Cato Institute noted that previous complexities regarding eligibility and withdrawal rules had discouraged many families from participating.

Entities

Cato Institute · Commonwealth · Donald Trump · Scott Bessent · U.S. Treasury Department

Claims

What the coverage asserts, and how many sources carry each claim.

[● 2 SOURCES] Parents or guardians must claim the accounts via an official application to manage funds and allow contributions. dominicanaaldia.com · time.news
[● 2 SOURCES] Adam Michel of the Cato Institute noted that complexity in eligibility and regulations discouraged participation among certain households. www.baocalitoday.com · time.news
[● 2 SOURCES] Treasury Secretary Scott Bessent stated that more than 60 million additional eligible children now have accounts ready to be claimed. dominicanaaldia.com · www.baocalitoday.com
[● 2 SOURCES] The government will provide a one-time $1,000 initial contribution for children born between January 1, 2025, and December 31, 2028. dominicanaaldia.com · www.baocalitoday.com
[○ 1 SOURCE] Funds can be withdrawn at age 18 with tax incentives for education, home down payments, or starting small businesses. dominicanaaldia.com
[DISPUTED] The Treasury Department automatically enrolled over 60 million children in Trump Accounts on October 1. dominicanaaldia.com · www.baocalitoday.com · time.news
[○ 1 SOURCE] Automatic enrollment began on October 1 following temporary regulations that took effect on September 30. time.news
[● 2 SOURCES] Only approximately 5% of low- and moderate-income families had successfully opened accounts under the previous opt-in structure. www.baocalitoday.com · time.news