Trump Accounts: A Historic New Savings Program for American Children
How the 2026 federal investment initiative aims to build lifelong wealth for millions of U.S. children.
President Donald Trump has launched an unprecedented savings initiative for children called “Trump Accounts,” a long-term government investment tool designed to give every American child a strong financial start from birth. The program, created under the “One Big Beautiful Bill Act,” will take effect in mid-2026 and is expected to include millions of children born between 2025 and 2028.
According to the Treasury Department, every eligible child will receive an initial federal deposit of $1,000, with families allowed to contribute up to $5,000 annually and employers up to an additional $2,500. Nonprofit organizations and local governments can also participate in funding these accounts. The funds will be invested exclusively in low-cost, broad-based U.S. stock index funds to ensure diversification and minimize risk, while prohibiting investment in individual stocks or specialized funds.
Private Sector Boost to Trump Accounts Program
The program has received substantial support from the private sector. Michael and Susan Dell announced a historic $6.25 billion donation to boost Trump Accounts, adding roughly $250 to millions of new accounts, according to the White House. This donation is considered one of the largest direct investments in the future of American children and reflects strong confidence in the program’s ability to build long-term wealth for future generations.
Treasury estimates suggest that a fully funded account could grow to $1.9 million by age 28 if contributions and investment growth continue, while a lower-growth scenario may yield around $600,000. Even without additional contributions, the initial government deposit alone could grow to between $3,000 and $13,800 over 18 years.
The accounts are designed to remain restricted until the child reaches age 18, with withdrawals prohibited during what the IRS calls the “growth period,” except in limited exceptional circumstances. Upon reaching adulthood, the account transitions into a structure similar to an Individual Retirement Account (IRA), with similar tax rules and withdrawal options, while maintaining a unique legal status that governs how funds are used and reported throughout the beneficiary’s life.
Opening Dates and Policy Impact of Trump Accounts
Parents or guardians will be able to open accounts using IRS Form 4547 or through the online portal TrumpAccounts.gov starting July 4, 2026. The public comment period on the regulations remains open until February 20, 2026, meaning some details may change before the official launch.
This program represents a significant shift in U.S. savings and investment policy, giving children the opportunity to build wealth from birth and strengthening families’ ability to secure a more stable financial future. With both public and private support, Trump Accounts may become one of the most important savings tools in American history and a new pillar for achieving the “American Dream” for generations to come.
