Trump auto-enrolls 10s of millions in child investment accounts

WASHINGTON — Every child in the United States with a valid Social Security number is now enrolled in a tax-advantaged investment account, titled a “Trump Account,” President Donald Trump announced Wednesday.

Parents must claim the accounts by downloading a Trump Account mobile app. Children born from 2025 through 2028 will automatically receive a one-time deposit of $1,000 from the U.S. government, once parents or guardians officially claim it. 

Children born before the eligibility window, up to age 10, can receive a $250 deposit donated by the Michael and Susan Dell Foundation, of Dell Technologies fortune.

Surrounded in the Oval Office by U.S. Treasury Department officials, business moguls and a half dozen children holding a banner reading, “Thank You for Trump Accounts,” the president said parents and guardians have voluntarily created accounts for 8 million children since the July 4 launch.

“With today's announcement, we're building on that success by 70 million accounts of children across America,” Trump said. “Put very simply, this money is your child's future.”

The White House estimates over 60 million accounts have been added via auto-enrollment, but did not provide a specific figure.

The president signaled to the children standing by the Resolute Desk and said, “These beautiful young children are extremely rich — they are now, and they will be in the future, extremely rich. So they have something to look forward to.”

Treasury Secretary Scott Bessent said the accounts mark the “beginning of the ownership society.” 

“I was talking to these great young people earlier,” he said. “They already know about compounding. They understand how the stock market works. … I think this is going to be a real-time financial literacy project.”

Investments from government, philanthropy

More than $4.5 billion has been deposited into the accounts since July 4, according to the White House.

Trump said Wednesday “much of that” has come from large donors, including the Dells, and Altimeter tech investment firm founder Brad Gerstner, who attended the announcement.

Parents and guardians have claimed roughly $2.6 billion in philanthropic contributions to date, with more available, according to the White House. The U.S. Treasury has so far seeded the accounts with $1.3 billion.

Another $638 million has been deposited into the accounts from friends and family of the individual accountholders, according to the administration.

Family and friends can contribute up to $5,000 annually to the accounts. Parents and guardians can elect to divert pre-tax contributions from their paychecks directly into their child’s account. Employers can match up to $2,500.

Over 70 companies have signed on to contribute to accounts of employees’ children, according to the White House.

Certain contributions, like the government’s one-time $1,000 deposit and contributions from state and local governments and nonprofits, do not count toward the $5,000 cap.

Susan Dell said she has received letters from parents and grandparents who have claimed the contribution from her foundation.

“It's not just the money that matters — that does matter — but knowing that someone believes in you and your future that matters just as much,” she said. “These accounts are ready. They're waiting for you, and they have money in them. So claim your child's accounts and start adding money to their accounts and preserving a wonderful future for them.”

The Dell Foundation targeted the contributions to 25 million children from ZIP codes with median family incomes of up to $118,000.

The Trump administration is directing families to the website trumpsaccounts.gov to find how to download the app and manage the account.

The White House estimates the government’s $1,000 seed money could grow to approximately $6,000 by age 18, if the family never contributed another dollar, assuming historical return data.

A child’s account that receives the maximum family and employer contributions of $5,000 at the start of each year could grow to nearly $200,000 by age 18, assuming a 7% annual rate of return, according to a Fidelity Investment hypothetical example, not adjusted for inflation. 

Used for retirement, education or down payment

The Trump Accounts, as named in the 2025 law dubbed “the big beautiful bill,” are structured like a traditional individual retirement account, but with different investment features and restrictions.

Money in the account can be invested in mutual funds or exchange traded funds that track the returns of large American companies, for example the S&P 500 index.

Investments will legally belong to a minor, but can only be managed by a parent or guardian until a child’s 18th birthday. 

The accounts are bound by certain restrictions, including a prohibition on withdrawals until age 18, when the account essentially becomes an individual retirement account subject to tax penalties for early withdrawal before age 59.5.

Some penalty-free exceptions include accessing the cash for a first-home purchase of up to $10,000, birth or child adoption fees up to $5,000 and qualifying medical expenses.