The Trump administration is launching a new saving account type from last year’s Big, Beautiful Bill.
The Trump administration has unveiled a new program known as “Trump Accounts,” aimed at helping parents build long-term savings for their children from birth through early adulthood. The initiative would create federally backed investment-style accounts seeded with an initial government contribution and designed to grow tax-free over time. Additional voluntary deposits are allowed from families and employers, with several companies already promising to enter the program. Administration officials framed the policy as an effort to promote financial literacy in children.
“For the first time ever, we’re going to give every newborn American child a financial stake in the future, head start of life and a fair shot at the American Dream,” Trump said in a speech during a summit with some of the nation’s leading CEOs and philanthropists. He added the accounts would be “one of the most transformative policy innovations of all time.” Under the new program, newborn babies from 2025 through December 31st, 2028, will be eligible for the $1,000 seed deposit from the federal government.
Under the Trump administration’s proposal, the accounts would be restricted for long-term uses such as education, job training, home purchases or retirement. differing from existing 529 custodial accounts that are solely for education. According to administration officials, the structure is intended to encourage responsibility rather than short-term spending.
President Trump also urged private companies and employers to participate in the program by offering optional contributions as a benefit for employees’ children. Administration officials said the White House is seeking corporate partners to help expand the reach of the accounts. JPMorgan Chase and Bank of America are among the first, largest corporate partners to join, with several other notable philanthropists pledging personal donations.
“I’m officially calling on all employers all across America to follow the lead of many of these amazing companies and make matching Trump Account contributions to benefit for the American worker, and they’re going to benefit the American worker so much,” the president said during Wednesday’s summit, touting the portion of the policy that allows for contributions from outside entities for as much as $5,000 annually.
According to the initial draft of the policy from last year’s One Big, Beautiful Bill act, the accounts must be invested in federally backed, U.S. Stock Market-supported funds, and are open to any child born in the next three years. Some qualifying children born before 2025 but under the age of 10 could receive $250 in seed money from the federal government if their parents open an account. Trump said accounts that received the maximum contribution total could grow to over $300,000 by the time the child turns 18.
One of the goals of the summit was for the administration to raise awareness of the program, which was officially announced over six months ago. A poll from Exclusive Public showed knowledge of the program is limited, with over 50% of Americans saying they had never heard of Trump accounts. Multiple celebrities are helping raise awareness, including Shark Tank’s Kevin O’Leary, Rapper Nikki Minaj and billionaire businessman Ray Dalio, who already pledged millions in support of the funds.
