WASHINGTON, D.C. — The United States Treasury Department announced on October 1, 2026, that it has automatically enrolled approximately 60 million children in the Trump Accounts program — a landmark tax-advantaged investment initiative designed to give every American child a financial stake in the nation's future.
The accounts, created under the One Big Beautiful Bill Act signed into law in 2025, represent one of the largest wealth-building programs for children in US history. Treasury Secretary Scott Bessent confirmed the milestone, stating that "with automatic enrollment, more than 60 million eligible children now have an account ready to be claimed."[reference:0]
What Are Trump Accounts?
Trump Accounts are tax-deferred investment accounts for American children under the age of 18. They function similarly to traditional IRAs, allowing funds to grow tax-free until withdrawal, with investments defaulting to a diversified index fund tracking the S&P 500.
The program was established through the Invest America Act, passed as part of the Working Families Tax Cut legislation. While the accounts carry President Trump's branding, the concept of providing children with a vehicle to compound savings over their childhood has long enjoyed bipartisan support.
The $1,000 Seed Contribution
Children born between January 1, 2025, and December 31, 2028 are eligible for a one-time $1,000 federal contribution from the Treasury Department. This seed money is invested in the stock market and grows tax-deferred until the child turns 18.[reference:3][reference:4]
According to Treasury estimates, a single $1,000 deposit at birth could grow to approximately $6,000 by age 18 with average market returns. If maximum annual contributions are made, the account could be worth more than $300,000 by the time the child turns 18.
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Automatic Enrollment: How 60 Million Children Got Accounts
Under temporary IRS regulations published in late September 2026, the Treasury Department began automatically creating accounts for eligible children without requiring parents or guardians to file an application first. The auto-enrollment applies to children who are under 18 at the end of the calendar year, have a Social Security number, and do not already have a Trump Account election on file.
The Treasury will hold periodic enrollment rounds for children identified after the initial rollout, expecting to add approximately 2 million accounts per future birth-year cohort. Accounts are maintained separately for each child but invested collectively through a Treasury-administered master trust.[reference:8]
Key Enrollment Details
- Auto-enrollment does not guarantee the separate $1,000 federal contribution — a parent or guardian must make a separate election to claim that benefit[reference:9]
- Parents can claim an account through an electronic application or Treasury webpage, verifying identity and legal authority[reference:10]
- More than 6 million accounts had already been opened by July 2026, with 1.4 million receiving the $1,000 seed contribution[reference:11]
- Approximately 86% of opened accounts belong to families earning less than $200,000 per year.
Contribution Limits and Rules
Families, friends, and employers can contribute up to $5,000 per year to a Trump Account. Certain government and nonprofit contributions do not count toward this annual limit, and the $1,000 federal pilot payment is also excluded from the cap.
During the account's "growth period" — which ends on December 31 of the calendar year in which the beneficiary turns 17 — investments are restricted to low-fee stock index funds and ETFs under proposed IRS regulations.
Withdrawal Rules: When Can Children Access the Money?
The money belongs to the child but generally cannot be accessed until after their 18th birthday. Prior to that, the account is controlled by parents or legal guardians.[reference:16]
Once the account holder turns 18, funds may be used without penalty for certain qualified expenses:
- Paying for college or further education
- Starting a small business
- Making a down payment on a first home
Withdrawals for other purposes are treated similarly to retirement accounts — subject to taxes and additional withdrawal conditions.
Philanthropic Support: Major Donations Supercharge the Program
The program has attracted significant philanthropic support from business leaders and corporations:
- Michael and Susan Dell contributed $6.25 billion for 25 million children under age 10 in low-income areas, who will receive an extra $250 into their accounts[reference:19]
- Ray Dalio and his wife Barbara donated so that approximately 300,000 children in lower-income areas of Connecticut receive an additional $250[reference:20]
- Gwynne Shotwell, President and CEO of SpaceX, contributed $350 million targeting children in lower-income areas, with emphasis on central Texas[reference:21]
- Micron pledged $250 million to support Trump Accounts[reference:22]
- Companies including Visa, Dell, Uber, Mastercard, and Comcast have pledged employer matches or additional seed funding.
Who Is Eligible?
| Category | Eligibility |
|---|---|
| Any US child under 18 | Can open a Trump Account with a valid Social Security number |
| Born 2025–2028 | Eligible for the $1,000 federal seed contribution |
| Born before 2025 | Can open an account but not eligible for the $1,000 seed |
| Auto-enrollment | Under 18, Social Security number, no existing election on file |
How to Claim Your Child's Account
- Visit TrumpAccounts.gov or download the official Trump Accounts app
- Verify your identity and legal authority to act for the child
- File IRS Form 4547 to make the election and claim the $1,000 contribution for eligible children[reference:26]
- Start contributing up to $5,000 per year from family, friends, or employers
- Monitor growth through the app or online portal
Criticism and Concerns
While the program has broad support, critics have raised concerns. Some argue that families with limited disposable income may be unable to make additional contributions and therefore benefit fully from the accounts. Others point out that the program's benefits are heavily dependent on stock market performance over an 18-year period.
Additionally, the automatic enrollment rule does not itself guarantee the $1,000 federal contribution — parents must actively claim that benefit, which could create barriers for families unfamiliar with the process.[reference:28]
The Bottom Line
Trump Accounts represent a historic effort to expand stock ownership and build generational wealth among American families. With 60 million children now automatically enrolled and major philanthropic contributions flowing in, the program has the potential to give an entire generation a financial head start.
Whether it delivers on that promise will depend on market performance, continued contributions, and how effectively families navigate the enrollment and claiming process.
For parents of eligible children — especially those born between 2025 and 2028 — the most important step is to claim the account and secure the $1,000 federal contribution before the enrollment windows close.
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