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President Donald Trump’s administration plans to launch the Trump Accounts on Saturday, linking the 250th anniversary of the signing of the United States Declaration of Independence with an effort to boost the financial independence of the country's children.
Under the program, parents can open investment accounts for any child born during Trump’s second term and automatically receive $1,000 from the government. It is possible to open accounts on behalf of older children—provided they do not turn 18 before the end of the calendar year—but they will not receive the $1,000.
That money—along with any other deposits made by employers, philanthropic organizations, and family members—is invested in the stock market through private firms. Children cannot access the money until they turn 18, and even then, only for specific purposes, such as paying for housing or education.
The accounts have already received a boost from billionaires, beyond the government's $1,000. Michael Dell, founder of Dell Technologies, and his wife, Susan, pledged to contribute $6.25 billion to the accounts of some children who do not qualify for the government's $1,000. On Wednesday, Trump announced on Truth Social that Sanjay Mehrotra, CEO of Micron Technology, would contribute $250 million.
The Republican president wrote that the donation “will help give an initial boost to the American Dream for these fabulous children as we celebrate the 250th anniversary of the United States. This HUGE investment will help MILLIONS of American children and families have a strong start in life and will give them REAL financial security!”
The Trump Accounts are being launched amid widespread concerns about affordability. In May, the Federal Reserve’s preferred inflation gauge hit a new three-year high, while gas prices reached their highest point during the war with Iran. Food prices have also increased since Trump’s inauguration. Meanwhile, many Americans are bracing for changes to social safety net programs like Medicaid and the Supplemental Nutrition Assistance Program, or SNAP, which were cut under the same legislation that created the Trump Accounts.
Here is what you need to know about the Trump Accounts and how to claim the money:
¿Qué es una Cuenta Trump?
It is a new savings tool in which money is invested in the stock market on behalf of a child. The minor cannot access the money until they turn 18 and can only use it for specific purposes, such as paying for tuition, starting a business, or making a down payment on a home. American families can now sign up at trumpaccounts.gov.
Once a parent or legal guardian opens an account, the U.S. Department of the Treasury will contribute $1,000 for newborns. Private banks and brokerages will manage the money, which must be invested in U.S. equity index funds that track the stock market and charge the accounts no more than 0.10% in annual fees.
Parents can contribute up to $2,500 per year in pre-tax income, similar to how they do with retirement accounts. The parents’ employers, family members, friends, local governments, and philanthropic groups can also contribute. Annual contributions are capped at $5,000, but contributions from governments and charities do not count toward that total.
“We are doing something much better than giving a handout to the next generation,” Trump declared. “We are giving them ownership of the future of the United States.”
¿Quién recibe los 1.000 dólares?
As part of the initiative’s launch, parents of older children are also encouraged to open accounts, but they will not receive the $1,000 bonus. That money is reserved for babies born during the calendar years of the current Trump administration.
To qualify for the $1,000 seed capital, a baby must be a U.S. citizen, have a Social Security number, and have been born between January 1, 2025, and December 31, 2028. Any parent can open an account for an eligible child, regardless of the parent’s immigration status.
It is important to note that the minor will not be able to access the money until they turn 18, except in rare circumstances. Therefore, those funds cannot assist with immediate expenses. And distributions from the accounts will be subject to taxes.
¿Pueden los niños mayores recibir algún bono para su Cuenta Trump?
Some do, thanks to contributions from some of the wealthiest entrepreneurs in the country.
The $6.25 billion donation from the Dells will allow some children aged 10 and under to receive $250 in seed capital if their parents open an account. That money is reserved for minors who live in zip codes with a median household income of $150,000 or less and who are too old to receive the Treasury’s $1,000 seed capital.
Hedge fund founder Ray Dalio and his wife, Barbara, pledged to contribute $75 million for children under 10 in Connecticut, where Dalio lives. That would equal $250 for 300,000 children in eligible zip codes.
Trump announced in January that investor Brad Gerstner would donate $250 to the Trump Accounts for every child under 5 in Indiana.
Several large companies also plan to incorporate contributions to the Trump Accounts into their benefits packages, including Uber, Intel, IBM, Nvidia, and Steak ’n Shake. The government has encouraged these types of donations through what U.S. Treasury Secretary Scott Bessent calls the “50-State Challenge.”
¿Cuál es la idea detrás de las cuentas Trump?
Proponents of the accounts say they want to introduce more people to the stock market and give even children born into poverty the opportunity to benefit from it. Supporters also argue that the accounts strengthen capitalism at a time when openly socialist candidates are gaining popularity.
“The answer to more socialism is more capitalism,” Gerstner stated in January at a White House event. “This makes every child in the United States a capitalist from birth.”
Approximately 58% of U.S. households owned stocks or bonds in 2022, according to the U.S. Securities and Exchange Commission, though the wealthiest 1% owned nearly half the value of the stocks that year.
Before Trump created the accounts, California, Connecticut, and the District of Columbia tested “baby bond” programs, which are similar to the Trump Accounts in some respects. Several other states, including Maryland, are evaluating programs.
But those programs are aimed at youth growing up in poverty or in the foster care system, as well as children who lost a parent to COVID-19. Children from wealthier families do not benefit from them. Additionally, they are administered by the state, not private investment firms.
¿Qué dicen los críticos de las cuentas Trump?
Critics point out that the accounts do little to help children in their early years, when they are most vulnerable and prone to living in poverty. They also argue that the accounts do not offset the cuts that the Trump administration and Republicans in Congress have made to other programs that benefit young people and the adults in their lives, including food assistance and Medicaid. Republicans created the accounts in Trump’s tax cut and spending law, which reduced spending on some of those programs.
And even with the government contribution, critics say that the Trump Accounts will widen the wealth gap. Wealthy families who can afford to make the maximum pre-tax contribution to the accounts will get the biggest benefits. Poor families who cannot set aside money for the accounts will benefit less. Assuming a 7% annual return, the $1,000 seed capital would grow to approximately $3,570 in 18 years.
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