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A new federal investment program backed by President Donald Trump launches this week, offering tax-advantaged savings accounts for children and a one-time $1,000 government-funded deposit for eligible newborns as part of an effort to encourage long-term investing.
The accounts, known as Trump Accounts, were created under the tax and spending package signed into law by Trump and become available Saturday.
Administration officials have described the initiative as a way to help families build wealth by giving children an early start in the financial markets.
“This is something that’s so special, has taken off and gone through the roof,” President Trump said in February. “These young people’s accounts could grow to over $100,000 or more by the time they turn 18.”
Under the program, children younger than 18 with a Social Security number are eligible to have an account opened in their name by a parent or legal guardian.
However, only children born between Jan. 1, 2025, and Dec. 31, 2028, qualify for the one-time $1,000 federal contribution during the program’s initial pilot period.
The accounts will be invested in broadly diversified stock index funds designed to track the overall U.S. stock market rather than individual companies.
Supporters of the program said the investment restrictions are intended to keep costs low while allowing savings to grow over time.
“If you have a 401(k), you understand the power of investing early for the future. Trump Accounts take that same principle and they apply it from the very beginning of Americans’ lives,” House Speaker Mike Johnson stated. “It’s a bold, transformative policy that gives every eligible American child a financial head start from day one … Trump Accounts are all about setting up the next generation for success.”
Parents, relatives, employers and other approved contributors may make additional deposits each year, subject to annual contribution limits established under federal law.
Funds generally must remain invested until the beneficiary reaches adulthood, when withdrawals may be made under rules established by the federal government.
Initially, the United States Department of the Treasury will administer the accounts. Families will later have the option of transferring them to participating financial institutions.