The U.S. Treasury will deposit $1,000 into investment accounts for every American child born between January 1, 2025 and December 31, 2028, with accounts launching July 4, 2026. Left untouched, that $1,000 grows to approximately $5,800 by the child’s 18th birthday. The Trump administration projects $3-4 trillion in wealth creation over 15 years, while critics note affluent families who can contribute the $5,000 annual maximum capture benefits worth over $300,000 per child—58 times what poor families receive from the federal seed money alone.
The program was created under the Working Families Tax Cuts Act signed July 4, 2025. Parents elect to open accounts by filing IRS Form 4547 with their tax returns or online at trumpaccounts.gov starting mid-2026. Children must be U.S. citizens with valid Social Security numbers. Funds must invest in mutual funds or ETFs tracking the S&P 500 or similar U.S. equity indexes. No withdrawals are permitted before January 1st of the year the child turns 18, when accounts convert to traditional IRAs.
Families can contribute up to $5,000 annually from non-governmental sources. Employers can contribute up to $2,500 per year without it counting as taxable income for employees. JPMorgan Chase, Bank of America, BlackRock, and Charles Schwab pledged $1,000 matches for eligible employees’ children, joining over 20 other companies.
Michael and Susan Dell committed $6.25 billion to provide $250 per child for 25 million children age 10 and under—those born before 2025 who missed the federal contribution cutoff. The gift targets ZIP codes with median incomes below $150,000. Connecticut hedge fund manager Ray Dalio and his wife Barbara pledged $75 million for 300,000 Connecticut children.
Treasury Secretary Scott Bessent projects the $1,000 federal contribution alone could grow to over $500,000 by retirement age, assuming historical market returns continue. President Trump called the program his administration’s signature achievement: “Every president in modern history has left our children with nothing but debt. But under this administration, we’re going to leave every child with real assets.”
Families contributing the maximum $5,000 annually see accounts exceed $300,000 by age 18 at 7% returns. Poor families who cannot afford contributions beyond the initial federal deposit receive $3,570-$5,800 over the same period—less than 2% of what wealthier families accumulate.
The Tax Foundation notes existing 529 college savings plans offer more flexibility and better tax benefits than Trump Accounts. Amy Matsui of the National Women’s Law Center said the accounts function as “another tax shelter for the wealthiest while the overwhelming majority of American families, who are struggling to cover basic costs like food, childcare, and housing, will be hard-pressed to find the extra money that could turn the seed money into a meaningful investment.”
Bessent dismissed the criticism as “terrible” and evidence critics are “out of touch.” He pointed out that huge numbers of American families lack $500 for medical emergencies: “So how can they say only $5,000? It’s just because President Trump has sponsored it, they don’t agree with it.” He added, “You don’t want a wealth gap? Go to Venezuela. Go to Cuba. Nobody has anything.”
Families must opt in by filing Form 4547. Ray Boshara of the Aspen Institute warned this requirement will exclude many eligible children: “We’re concerned about families who don’t have to file, families who need to file but don’t, families who do file but don’t do the form correctly. They’re going to miss a lot of kids if you do it through a tax return.”
The program delivers universal seed money while requiring existing wealth to generate meaningful returns. The $6.25 billion Dell gift explicitly fills gaps for children excluded from the federal contribution—undermining claims of universality while 500,000 families already filed elections for accounts launching America’s 250th anniversary.
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