Trump Accounts are federally seeded, tax deferred investment accounts for American children, and about 1.5 million newborns will each get $1,000 in seed money when the program launches on July 4, according to the U.S. Department of the Treasury.
In Brief
- Trump Accounts open on Independence Day with a $1,000 government deposit for eligible newborns.
- About 5 million kids under 18 who already signed up will have accounts activated the same day, though without the $1,000.
- Up to 25 million children age 10 or younger in qualifying ZIP codes may get a separate $250 gift from the Michael and Susan Dell Foundation.
- Families, relatives and employers can contribute up to $5,000 per child annually, a cap that adjusts for inflation starting in 2027.
- Accounts convert to a traditional IRA once the child turns 18.
How the Money Grows Until Adulthood
Once opened, a Trump Account invests the seed deposit so it can compound for years before the child ever touches it. At 18, the account simply becomes a traditional IRA and follows the same withdrawal and tax rules that already govern those accounts. Treasury Secretary Scott Bessent framed the program in ownership terms during a Senate Finance Committee hearing earlier this year, noting that nearly 40 percent of Americans currently have no exposure to U.S. equities. He argued the accounts are meant to give every child, in his words, a stake in the companies and wealth the country produces, so that every American baby is born a shareholder.
Who Actually Qualifies for the $1,000
The full $1,000 government deposit is reserved for infants, not every child under 18. To receive it, a baby must be born between January 1, 2025, and December 31, 2028, must be a U.S. citizen, and must have a Social Security number. Kids who are already under 18 and get an account activated on July 4 do not receive that newborn seed money, though they can still benefit from the separate $250 charitable deposits available in qualifying lower income ZIP codes, and from ongoing family contributions.
Comparing the Deposit Types
| Deposit Source | Amount | Who Qualifies |
|---|---|---|
| Federal seed deposit | $1,000 | U.S. citizen newborns, born 2025 to 2028, with a Social Security number |
| Dell Foundation charitable gift | $250 | Children age 10 or younger in qualifying ZIP codes |
| Family or employer contributions | Up to $5,000 per year (inflation adjusted after 2027) | Any child with an open Trump Account |
Is It Too Late to Sign Up?
Not even close. Census Bureau data puts the number of children under 18 nationwide at roughly 73.1 million as of 2024, and only a fraction of them have accounts opened so far. Parents can apply through the online portal at Trumpaccounts.gov or through the IRS site, using an existing or newly created account, and the Treasury has also rolled out a Trump Accounts app for setup and ongoing management. No contribution is required to open an account, though the Treasury encourages families to add money once it exists so the balance has time to grow. Missing the July 4 launch date carries no penalty either, since accounts can be opened anytime before a child turns 18. The bigger question now is how many of those 73.1 million eligible families actually follow through and claim the accounts sitting available to them.