President Donald Trump unveiled details today about Trump Accounts, a federal program aimed at helping families build financial security for their children through tax-advantaged savings. The initiative, which gained momentum with a major private donation, promises seed money for newborns and flexible options for ongoing contributions.
Trump Accounts emerged from the Working Families Tax Cuts Act, signed into law in July 2025 as part of broader tax and spending reforms. Lawmakers designed the program to function like a retirement account but tailored for minors, allowing investments to grow tax-free until the child reaches adulthood. Eligible children receive an initial government deposit, with the goal of fostering long-term wealth accumulation without income restrictions.
Funding for the program comes from two main sources. The U.S. Treasury provides a one-time $1,000 contribution for qualifying newborns, drawn from federal budgets allocated under the act. Separately, tech billionaires Michael and Susan Dell announced a $6.25 billion pledge today, which will deliver $250 grants to 25 million American children aged 10 and under who live in households with median incomes below $150,000. President Trump called the gift “truly one of the most generous acts in the history of our country” during a White House event.
Any U.S. citizen child under age 18 can have a Trump Account opened on their behalf. However, the $1,000 government seed applies only to those born from January 1, 2025, through December 31, 2028. Parents or guardians simply need the child’s Social Security number to elect participation. Accounts become available for contributions starting July 4, 2026, and the Treasury will automatically generate them for newborns upon election.
To get started, families will use IRS Form 4547, released today, to open an account and request the seed funding. The form requires basic information like the child’s details and guardian contact, submitted online via IRS.gov or by mail. Once established, accounts invest in low-cost index funds that track the stock market, managed through approved financial institutions such as Charles Schwab. Withdrawals remain penalty-free after age 18 for uses such as education, a first home, or retirement.
Parents, relatives, or even employers can contribute up to $5,000 annually in after-tax dollars until the year before the child turns 18, with limits adjusted for inflation after 2027. Contributions do not count against the seed money and can include cash transfers or automatic payroll deductions. Treasury officials estimate that maximum annual deposits, combined with the initial $1,000, could grow to nearly $1.9 million by age 28 through compound interest.
Accessing the funds proves simple once the child reaches eligibility. Beneficiaries control the account at age 18, viewing balances and making qualified withdrawals through the linked financial provider’s portal. Early access incurs penalties except for specific needs like higher education expenses. For older children who miss the government seed, the Dell grants offer a comparable entry point, available via the same form starting in 2026.
“We’re auto-creating these accounts for every child at birth,” President Trump said. “We’re going to be very focused on making sure that every family entitled to get one of these accounts is able to claim it and get it.” More specifics about account regulations are expected in the coming months.