The federal government has launched Trump Accounts,
a new initiative providing $1,000 in seed funding for children born between January 1, 2025, and December 31, 2028, who possess a valid Social Security number. Created under the One Big Beautiful Bill Act, which President Donald Trump signed into law on July 4, 2025, the program creates tax-advantaged investment accounts designed to function similarly to traditional individual retirement accounts (IRAs).
US Government Provides $1,000 Seed Funding for Children Through New “Trump Accounts”
Account Structure and Investment Defaults
The accounts are managed by parents and grow tax-deferred until the child reaches 18 years of age. At that point, funds can be accessed for specific purposes, including buying a home, opening a business, or attending school. According to the Treasury Department, the accounts are initially invested in the State Street SPDR Portfolio S&P 500 ETF, a low-cost index fund tracking the 500 largest publicly traded U.S. companies. The Treasury indicated on July 1 that additional stock index fund options will be available in the coming months.
While the $1,000 seed is reserved for children born between 2025 and 2028, parents may open accounts for older children, though those accounts will not receive the government seed money. The Committee for a Responsible Federal Budget estimates that these $1,000 contributions will cost the government $17 billion through 2028.
Private Contributions and Additional Funding
Beyond the federal seed money, the program allows for contributions from philanthropists, charities, and state and local governments on a tax-free basis. Michael and Susan Dell have pledged up to $6.25 billion to the program. This donation funds an additional $250 for the first 25 million children under the age of 10 who reside in ZIP codes with a median income of $150,000 or less.
Several companies have also announced they will match employee contributions to these accounts, including Nvidia, BlackRock, and Turning Point USA. A White House Council of Economic Advisers report suggests that if a child’s account is supplemented by the maximum annual contribution of $5,000 (adjusted for inflation starting next year) and achieves an average annual return of 10.3%, the account could grow to $303,757 by age 18.
Implementation and Public Response
The Treasury Department reports 6.5 million sign-ups for Trump Accounts, with 1.5 million of those eligible for the $1,000 seed funding. However, some parents have reported delays in receiving the funds. The Treasury Department stated that the lag is standard processing time, like receiving a tax refund,
noting that most parents wait one to two days, though some have been given estimates of up to four weeks.
The program has faced criticism from economists and political figures. Bennie Thompson of Mississippi expressed skepticism on X on July 6, citing Trump University. Ismael Cid-Martinez, an economist at the Economic Policy Institute, stated that the vehicle is beneficial for families already positioned to save but will do little for those who are economically vulnerable. Critics also point to the fact that the One Big Beautiful Bill Act included billions of dollars in funding cuts to the Supplemental Nutrition Assistance Program (SNAP) and Medicaid.
Comparison to Other Wealth-Building Tools
Trump Accounts are similar to “baby bonds” used in some Democratic-led states and cities to reduce the wealth gap. However, unlike those programs which typically target disadvantaged children, Trump Accounts are available to families of all income levels. President Trump has claimed the accounts could help children from homes with essentially no money
become “very rich,” though financial experts argue this would require parents to contribute thousands of dollars annually.
| Feature | Details |
|---|---|
| Government Seed | $1,000 for children born 2025–2028 |
| Default Investment | State Street SPDR Portfolio S&P 500 ETF |
| Eligibility for Extra $250 | Under age 10; ZIP code median income ≤ $150,000 |
| Access Age | 18 years old |
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