Trump Accounts are a new government investment program with tax benefits, available for children under 18. The program creates long‑term investment accounts in kids' names, seeded with a government contribution for many children, to help them start building wealth early in life.
This guide focuses on the background and intent of the program— how it came to be, why it exists, and how it can help people unlock financial progress.
Key takeaways
Trump Accounts are a new government investment program with tax benefits, available for children under 18.
Child investment accounts have a long history. Versions have been discussed for decades under labels like "baby bonds" and "child development accounts," with support from people across the political spectrum
Many eligible kids get a $1,000 head start. The program includes a one‑time $1,000 federal deposit for eligible children born between Jan. 1, 2025, and Dec. 31, 2028, with no family contribution required to receive that money.
These accounts are built for long‑term investing. Before age 18, funds can only be invested in certain approved investments, generally low cost mutual funds or ETFs that track broad U.S. stock market indexes, such as the S&P 500. Earnings grow tax deferred, and withdrawals are generally permitted in adulthood under federal rules.
Enrollment typically happens through your tax return. Families can elect to open an account by completing IRS Form 4547 as part of the tax filing process, often through their existing tax software or provider.
What is a Trump Account?
A Trump Account is a child investment account created under federal law. For eligible children born between Jan. 1, 2025 and Dec. 31, 2028, the U.S. Treasury provides a one time $1,000 deposit when the account is opened.
How it works:
It's opened in a child's name, with a parent or guardian managing it until the child reaches age 18.
For babies born between Jan. 1, 2025, and Dec. 31, 2028, the U.S. Treasury makes a one‑time $1,000 deposit when the account is established.
The money in the account is invested in approved funds, usually low cost index funds that track the overall U.S. stock market, such as the S&P 500. It is meant for long term saving, not everyday spending.
Investment gains grow tax‑deferred, similar to a traditional IRA — taxes generally apply later, when money is withdrawn under federal rules.
How did the Trump Account program start?
Although the branding is new, the basic concept — government‑supported accounts that children can access as adults — has been on the policy agenda for years.
Long‑running ideas: baby bonds and child development accounts
Economists and lawmakers have debated versions of child investment programs under several names:
Baby bonds: universal, government‑funded accounts that receive deposits during childhood and can later be used for things like education, a first home, or starting a business.
Child development accounts: investment accounts, often tied to education, that combine government seeding with family contributions and sometimes matching dollars.
Across these proposals, the shared idea is simple: help kids enter adulthood with an asset that builds wealth.
Trump Accounts draw on that same tradition. The program's structure emphasizes market growth over time — letting invested funds compound for many years — rather than ongoing cash payments from the government.
From policy idea to law
The current version of Trump Accounts was written into the One Big Beautiful Bill Act, a wide‑ranging tax and spending law passed in 2025.
Key steps along the way included:
Prior to 2025: Policy organizations, including Invest America, advocated for child investment account proposals and helped build early support for the concept.
Early 2025: Lawmakers added a child investment account proposal to the broader bill.
Spring 2025: Congress debated design details, like who qualifies, how accounts are funded, and who oversees them.
Summer 2025: Both the House and Senate passed the legislation.
Late 2025: The president signed the bill; Trump Accounts became part of the tax code.
Private‑sector support helped build momentum. Large philanthropic commitments, including a multibillion‑dollar pledge tied to the Dell family, and backing from several major companies, including Chime, who committed to matching contributions for the children of employees.
How to get a Trump Account
Right now, enrollment for Trump Accounts starts in the tax filing process. Program details are still being finalized, so there may be other ways to enroll in the future.
Enrolling through your tax return
Today, the main way families signal that they want a Trump Account for an eligible child is by completing IRS Form 4547 as part of their federal tax return:
When you file your taxes, you provide information about your dependents.
If your child appears to qualify under the program's rules, you can complete the questions needed for Form 4547 when you file your taxes.
The form is submitted along with your return, letting the government know you want an account opened on your child's behalf when the program goes live.
As the program rolls out, the Treasury and its financial partners are expected to share more details on how families will activate accounts and choose investments once the infrastructure is fully in place.
If you choose to file your taxes through a partner like Chime, you may see education about Trump Accounts and an option to complete the required form as part of that experience — but the underlying program remains the same federal initiative, no matter how you file your taxes.
Understanding the program's history and how it works can help you decide whether opening a child investment account fits into your family's plan.
How to get the $1,000 contribution
One of the most talked‑about features of Trump Accounts is the one‑time $1,000 government contribution for eligible kids.
Here's what's known from public guidance so far:
Who gets it: Children born in a specific pilot window between Jan. 1, 2025, and Dec. 31, 2028 with a valid SSN qualify for a one‑time $1,000 deposit from the U.S. Treasury into their account, subject to federal eligibility rules.
How it's funded: The $1,000 comes from the federal government and is deposited directly into the child's account once they are enrolled in the program.
How to access the account: After a parent or guardian elects to open the account through their tax return, the Treasury Department or its agent will contact them with instructions to complete identity verification and finish opening the account. Based on current guidance, this outreach is expected to begin in May 2026.
Family contributions are optional. Parents and guardians do not have to contribute their own money to receive this seed deposit.
Separate from annual limits: The $1,000 from the government does not count towards the aggregate annual contribution limit of $5,000.
Once invested, that initial $1,000 has years to grow alongside any potential contributions from family members, employers, states or philanthropies.
Other types of child investment accounts
A child investment account is any account that lets you invest on behalf of a child over a long period of time.
Parents and caregivers may use a mix of:
529 college savings plans, which offer tax advantages when money is used for qualified education expenses.
Custodial accounts (UGMA/UTMA), where an adult manages the money but the assets legally belong to the child and transfer to them at a set age.
Roth IRAs for kids, which let children with earned income invest for retirement with tax‑advantaged growth.
All of these are designed to help kids build an investment base they can use later in life, whether that's for school, a first home, or other big milestones.
How child investment accounts differ from savings accounts
A regular savings account and a child investment account can both be "for" a child, but they work very differently.
Traditional savings account
Holds cash
Earns a modest interest rate
Easy to access for short‑term needs
Interest is usually taxed each year
Child investment accounts (including Trump Accounts)
Hold investments, which can go up or down in value
Are built for long‑term goals, not everyday spending
Offer tax advantages in many cases, so more of the growth can stay invested over time
Often limit when and how money can be withdrawn, especially before adulthood
The goal with child investment accounts is to help kids build money over time— something that can support major steps in adulthood, not just cover short‑term expenses. Trump Accounts are one example of this broader category: a federal child investment program that adds a government contribution on top of any family savings.