Trump Accounts will provide $1,000 to newborns whose parents open accounts, invested in U.S. stock index funds until the child turns 18.
As part of President Donald Trump’s economic initiatives, Trump Accounts aim to help children from low-income households build wealth. A U.S. Treasury event Wednesday gathered politicians and celebrities, including Sen. Ted Cruz and rapper Nicki Minaj, to promote the program, described as a key milestone in Trump’s administration.
The accounts are accessible only when the child turns 18 and can be used for tuition, home purchases, or business ventures. Parents can contribute up to $2,500 annually, with additional contributions from friends, relatives, employers, and philanthropic groups. Annual fees are capped at 0.10%.
To qualify for the $1,000 Treasury seed money, a child must be a U.S. citizen born between Jan. 1, 2025, and Dec. 31, 2028. Parents of older children can still open accounts, but without the bonus. Contributions are taxed, and funds are not available for immediate expenses.
Critics argue the accounts do little for children’s early needs and may widen the wealth gap. Affluent families contributing the maximum could benefit most, while poorer households may gain little. Supporters maintain the accounts introduce children to investing and bolster capitalism amid rising socialist sentiment.