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The Trump administration will launch new investment accounts for children on July 4, with the initiative intended to boost the financial standing of millions of Americans under the age of 18.
Dubbed “Trump Accounts” by the administration, the program will be available for children who do not turn 18 before the end of the calendar year in which their parents open an account, according to the IRS. The program was established under the One Big Beautiful Bill Act signed into law nearly a year ago
As of Thursday, more than 6 million families have signed up to create an account via IRS Form 4547 — a nod to President Trump being the 45th and 47th president. Once the accounts launch, family members, friends and other adults can contribute up to $5,000 annually to them, a limit that will increase with inflation starting in 2028.
The Treasury Department will also contribute $1,000 to accounts of children born between Jan. 1, 2025, through Dec. 31, 2028. A number of companies have said they will match that contribution for the children of employees.
Trump Accounts will operate as an individual retirement account (IRA) without a gift tax.
A senior administration official said Thursday that parental contributions to an account will “automatically be invested” in the State Street SPDR Portfolio exchange-traded fund, the lowest-cost S&P 500 index fund available also known as SPYM.
The Treasury Department also announced Thursday it will accept contributions of tradable stock to the accounts. Treasury Secretary Scott Bessent said in a release the move “makes it easier for philanthropists to help American children build long-term financial security.”
Bessent added, “By accepting contributions of publicly traded stock, Treasury is creating a practical pathway for large-scale private giving to support the next generation.”
Since he signed the tax and spending measure into law, Trump has made lofty predictions for how the accounts will impact Americans.
“Decades from now, I believe the Trump Accounts will be remembered as one of the most transformative policy innovations of all time,” the president said at an event promoting the initiative in January.
Administration officials on Thursday also argued the accounts will help level the playing field for working-class families, during a time when affordability is top of mind for many Americans.
More than 85 percent of Trump Accounts opened are linked to families earning less than $200,000 annually, according to a senior administration official.
“Today, 38 percent of Americans do not own stock,” the official added. “With Trump accounts, every newborn child will be invested in the stock market on day one, along with millions of other children.”
A special initiative led by first lady Melania Trump has ensured that foster children receive Trump Accounts in states that have agreed to direct welfare agencies to spark early investments.
Another handful of philanthropic organizations have agreed to invest in kids, with the Dell Foundation committing to sponsor 25 million accounts for children who live in zip codes with a median income of $150,000 or less with a $250 deposit.
Trump administration officials said they will educate parents and children using the Trump Account app with a curriculum curated by the Financial Literacy and Education Commission.
Officials say they want this initiative to reach all children in the country, making sure that everybody gets a Trump Account who’s eligible.
“The Treasury Department has launched billboards nationally to encourage app downloads. This spreads the message far and wide,” a senior administration official said.
“We will have an exciting brand partnership coming up for announcements, as well as some other ways to reach families who have just had newborns and babies in medical facilities,” they added.
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