Introduction of 'Trump Accounts' Aimed at Boosting Children's Wealth

Thu Jan 29 2026 19:00:55 GMT+0200 (Eastern European Standard Time)

The U.S. Treasury and the White House are set to launch 'Trump Accounts,' a new initiative aimed at providing children with early investment opportunities through a $1,000 deposit for newborns.

The Trump administration is launching 'Trump Accounts,' a program that offers $1,000 to every newborn in the U.S. whose parents open an investment account. While designed to promote wealth-building for low-income families, critics argue it may widen the wealth gap due to unequal contributions from affluent families. The program will see contributions managed by private firms and is expected to stimulate the stock market among younger generations.

The U.S. Treasury and the White House are gearing up for the introduction of a new program dubbed 'Trump Accounts,' a key element of President Donald Trump's efforts to enhance economic affordability across the nation. The initiative is part of Trump’s tax legislation and aims to provide a $1,000 initial funding to every newborn, provided their parents open an investment account.

Scheduled for formal unveiling at a U.S. Treasury event, which will feature prominent figures including Texas Republican Senator Ted Cruz and music artist Nicki Minaj, the discussions will center on the potential economic benefits of this program. Proponents believe 'Trump Accounts' will aid children from low-income backgrounds in building wealth over time.

Understanding 'Trump Accounts'

'Trump Accounts' serve as a new savings mechanism where funds are invested in the stock market for children. Beneficiaries can access their funds only after they turn 18, using the money for specific purposes such as education, business endeavors, or purchasing a home.

Upon account creation, the U.S. Treasury allocates $1,000 for every newborn, with private banks overseeing the investments, which must target U.S. equity index funds. The initiative allows parents to inject up to $2,500 annually from pretax income, mirroring retirement account options, while total contributions can reach $5,000, regardless of government assistance.

Eligibility Criteria for 'Trump Accounts'

While parents of older children are encouraged to apply for these accounts, the exclusive $1,000 incentive is designated for babies born during the Trump administration’s designated years. Eligible newborns must be U.S. citizens and have Social Security numbers, with accounts available for infants born from January 1, 2025, to December 31, 2028.

In a philanthropic twist, billionaires like Michael and Susan Dell have pledged substantial donations, allowing older children in specific income brackets to benefit as well, demonstrating a broader commitment to alleviate financial hardships.

Opening an Account

The accounts are not set to accept contributions until July 2026, but parents can initiate the process now via IRS Form 4547. Timely registration ensures children receive funds upon eligibility. After signing up, parents will receive additional instructions for account setup.

Motivation Behind the Initiative

Supporters of 'Trump Accounts' argue the program aims to introduce stock market investing early in life, allowing children from all backgrounds to accumulate financial benefits. This initiative is positioned as a counteraction to the rising popularity of socialism, highlighting increased access to investments for families.

Criticism and Concerns

However, the plan has faced criticism for potentially leaving vulnerable children without necessary immediate resources. Detractors point out that overall, the initiative may deepen economic divides rather than provide equitable support across families with varying incomes.

In conclusion, while 'Trump Accounts' offer new opportunities for wealth building among children, especially those from lower-income households, the implications of the program on wealth inequality require further examination.