Trump Accounts for Kids Launch July 4 With $1,000 Investment

The federal government’s new tax-advantaged investment program for children, known as “Trump Accounts,” is set to launch on July 4, giving eligible families access to long-term investment accounts designed to help build wealth for future generations. The retirement-style accounts, officially called 530A accounts, will include an initial government-funded contribution for qualifying children and allow families to make additional annual investments.

Trump Accounts can be opened for anyone under the age of 18 by a parent, guardian or another authorized adult. The accounts function similarly to individual retirement accounts and will automatically convert into traditional IRAs once the beneficiary reaches adulthood. Funds will be managed by Bank of New York Mellon and invested in U.S. stock funds, with investment growth remaining tax-deferred.

Children born between 2025 and 2028 qualify for a $1,000 government-funded contribution, with deposits beginning on July 4. Additional investments can also begin immediately after the program launches. Some children born between 2016 and 2024 who do not qualify for the $1,000 payment may instead receive a $250 initial contribution if they live in ZIP codes where the median household income is $150,000 or less, covering the majority of communities across the United States.

Families, employers and other contributors may collectively deposit up to $5,000 annually in after-tax dollars into each account until the year before the beneficiary turns 18. According to the Treasury Department, more than six million children had already been registered by early June, including approximately 1.5 million who qualify for the $1,000 government contribution.

Officials estimate that approximately 14.3 million babies will be born in the United States between 2025 and 2028, resulting in an estimated $14.3 billion cost to provide the initial government investment for every eligible newborn.

The federal seed funding will come from general Treasury revenues, while several corporations and philanthropic organizations have pledged additional support. Companies including Micron, SoFi, Charter Communications, BNY, BlackRock, Investment Company Institute, Robinhood and Charles Schwab have announced plans to match the federal $1,000 contribution for eligible employees’ children. Micron also plans to provide a one-time $250 contribution for children living in counties where it operates across Idaho, New York, Virginia, California, Colorado, Minnesota and Texas.

The $250 seed funding available for children in qualifying lower-income ZIP codes is supported by a $6.25 billion commitment from technology executive Michael Dell and his wife, Susan Dell. Hedge fund investor Ray Dalio and his wife, Barbara Dalio, have also pledged additional funding for eligible children in Connecticut, where approximately 87% of residents meet the program’s ZIP code criteria.

Parents and guardians can register by submitting IRS Form 4547 or through the official TrumpAccounts.gov website. After opening an account, families can activate and manage it using the Trump Accounts mobile application, which was developed with assistance from Robinhood.

While supporters say the accounts provide children with access to long-term investment opportunities regardless of family background, some researchers believe wealthier households will benefit more because they are more likely to make ongoing contributions. The Brookings Institution noted, “Given that Trump accounts depend primarily on family and employer contributions… Many policymakers predict that these accounts will disproportionately benefit wealthy Americans.”

According to estimates cited by Connecticut Treasurer Erick Russell, families able to contribute the maximum $5,000 each year could accumulate roughly $150,000 by the time a child reaches age 30, while children from lower-income households may end up with approximately $2,500. Treasury officials said about 85% of currently registered accounts belong to families earning less than $200,000 annually.

The concept behind the program builds on decades of bipartisan proposals aimed at providing financial assets to children at birth, including the SEED initiative and Baby Bonds proposals introduced by Democratic lawmakers. Unlike many previous plans, however, the new program provides the same initial government investment regardless of household income and invests funds in the stock market rather than government-managed trust funds.