US Launches 'Trump Accounts' With $1000 for Every Newborn

The administration of U.S. President Donald Trump on Saturday officially launched the "Trump Accounts" program, a government-backed initiative that provides every eligible American child born between 2025 and 2028 with a $1,000 federally funded investment account designed to promote long-term savings and wealth creation.

The rollout coincides with celebrations marking the 250th anniversary of American independence and represents one of the administration's flagship economic initiatives aimed at expanding household participation in investing from an early age.

The program is intended to complement existing college savings plans and tax-advantaged retirement accounts by giving families a new vehicle to build financial assets for their children over the long term.

Andy Blocker, Head of Policy and Government Relations at financial services firm Edward Jones, said the government's initial $1,000 contribution addresses one of the biggest barriers to investing: the lack of starting capital.

Several major U.S. companies have announced support for the initiative through matching contributions or employee benefit programs, including Visa, Dell Technologies, and Comcast.

Micron Technology also pledged this week to commit $250 million toward supporting the Trump Accounts program, underscoring growing corporate participation.

The federal government will automatically provide the $1,000 contribution for eligible U.S. children born between 2025 and 2028.

Families may also open accounts for children under the age of 18, provided the child has a valid Social Security number.

According to preliminary data from the U.S. Centers for Disease Control and Prevention (CDC), approximately 3.6 million babies were born in the United States during 2025, making millions of children eligible for the initiative.

The U.S. Treasury Department will oversee the program, while financial services firms Robinhood and BNY will serve as account administrators.

Accounts can be opened at no cost, and parents, relatives, employers, and charitable organizations may contribute up to $5,000 annually before taxes.

Funds will be invested automatically in low-cost index funds designed to track broad U.S. equity markets and generate long-term capital appreciation.

Account holders will gain full access to their funds upon reaching 18 years of age, with the option to withdraw the money or continue investing. Investment gains will be subject to taxation when withdrawn.

Program estimates suggest that a child receiving annual contributions of $5,000 could accumulate approximately $271,000 by age 18, assuming historical average returns comparable to those of the S&P 500 Index.

If annual contributions continue through adulthood under the same assumptions, the account's value could potentially grow to nearly $13 million by age 55. However, officials caution that actual investment returns will depend on future market performance and cannot be guaranteed.

While supporters view the initiative as a significant step toward encouraging financial literacy and long-term investing from childhood, some policy experts question its ability to narrow wealth disparities.

Critics argue that the program's ultimate benefits will depend largely on families' ability to make consistent annual contributions over many years, meaning higher-income households may be better positioned to maximize returns.

Adam Michel, Director of Tax Policy Studies at the Cato Institute said the greatest advantages are likely to accrue to families with stable incomes and stronger savings capacity, while employer contributions may remain concentrated among workers at larger corporations.