(WDNews) — President Donald Trump on Wednesday, Jan. 28, provided new details on a proposed federal savings and investment program called “Trump Accounts,” saying the initiative would allow all U.S. children age 18 and younger to open an account, with certain newborns receiving a $1,000 government-funded deposit.
Speaking during a White House event, Trump said the program is designed to give children an early financial start and encourage long-term saving and investing. “For the first time ever, we’re going to give every newborn American child a financial stake in the future,” Trump said.
Under the plan outlined during the event, children born between Jan. 1, 2025, and Dec. 31, 2028, would receive a $1,000 seed contribution from the federal government. Trump said the account would be created in the child’s name, with a parent or legal guardian serving as custodian until the child turns 18.
Trump said children who are already born and under age 18 would also be eligible to open a Trump Account, but they would not receive the $1,000 government deposit. Those accounts would instead rely on voluntary contributions from parents, family members, employers or others.
“All U.S. children under 18 with a valid Social Security number are eligible to establish a Trump Account,” Trump said. “Parents or legal guardians can open and manage the accounts on behalf of their children.”
According to details shared during the event, no personal contribution would be required to open an account. However, families, friends and employers would be allowed to contribute up to $5,000 per year per child to help grow the balance over time.
Trump said the funds would be invested automatically in American companies through a diversified portfolio of low-cost index funds. “Your child’s funds will automatically be invested in American companies,” he said, adding that families would be able to track account balances and performance through an online platform.
The administration said the accounts are designed to grow on their own over time, even without additional contributions. Trump said children would also be able to see how their money grows as they get older, which he said would help build financial literacy. “They’ll gain more than just money,” Trump said. “They’ll gain financial literacy.”
Trump said the accounts would officially launch July 4, 2026. Parents would be able to open accounts when filing their taxes using a newly created IRS Form 4547 or through an online portal expected to be available by summer 2026.
Once a child turns 18, the account would transfer fully into their control. Trump said the funds could then be used for qualified expenses such as higher education, purchasing a first home or starting a business. Withdrawals would be taxed at ordinary income rates, similar to traditional retirement accounts, with no additional penalty for eligible uses.
Employers would also be allowed to participate in the program. Trump said businesses may choose to contribute to Trump Accounts for employees or employees’ children, and some employers could offer payroll-based contributions under existing benefit plans. Corporations could contribute up to $2,500 per child per year, with contributions described as tax-deductible.
Trump characterized the proposal as a long-term investment in families and future generations. “This is a pro-family initiative that will help millions of Americans harness the strength of our economy to lift up the next generation,” he said. “They’ll really be getting a big jump on life.”
Additional details and updates about the program are expected to be posted at TrumpAccounts.gov as the planned rollout continues.
