Trump Accounts Automatically Enroll 60 Million Children

Sixty million American children have been automatically enrolled in "Trump Accounts," a federal initiative announced by President Donald Trump. This automatic enrollment brings the total number of enrollees to 70 million, encompassing nearly every American child under 18 with a Social Security number, according to the White House.

"Today we celebrate our next historic … step to ensure every American child has a fair shot at the American dream," Trump stated. "The U.S. government is automatically creating a tax-free investment account for every child to grow over the course of their lives and to be used to their benefit and for their benefit after they turn 18."

Since the program's launch on July 4, approximately 10 million accounts have been created by parents or guardians. Over $4.5 billion has been deposited into these accounts, including $1.3 billion in federal seed money, $2.6 billion in philanthropic donations, and over $600 million from family and friends of account owners.

What Are Trump Accounts?

Trump Accounts are tax-deferred investment accounts designed for American children under the age of 18. Money deposited into these accounts will be invested in a fund tracking the S&P 500 Index. The funds can only be accessed by the child after they turn 18, at which point the account will convert to a traditional Individual Retirement Arrangement (IRA).

Parents or guardians will manage the accounts until the child reaches adulthood. The program, established under Trump’s “One Big Beautiful Bill,” aims to foster long-term wealth accumulation for American children.

Michael Dell, a philanthropist involved with the program, noted that studies indicate children with such accounts are more likely to graduate high school, attend and graduate college, buy a home, and become contributing members of society. He also stated that these accounts improve the mental health of both children and parents.

However, some policy experts, like Madeline Brown of the Urban Institute, suggest the program could do more to address wealth disparities by providing greater contributions to lower-income families.

Eligibility and Seed Deposits

All American children under 18 with a valid Social Security number are eligible for a Trump Account. With the automatic enrollment, the White House asserts that every eligible child now has an account.

Children born between January 1, 2025, and December 31, 2028, will automatically receive a $1,000 one-time, tax-free government payment. Additionally, due to a $6.25 billion investment from philanthropists Michael and Susan Dell, children born between 2016 and 2024 living in zip codes with a median family income at or below $118,000 will receive a $250 deposit. Children living on military bases also qualify for this deposit.

An analysis by Investopedia suggests that approximately 71% of children under 10, totaling about 25 million, will qualify for the $250 deposit.

Claiming an Account

Parents or guardians must visit TrumpAccounts.gov to download the official app and claim a child's account. The process involves verifying their identity and relationship to the child. This step is also necessary for automatically enrolled children to receive seed contributions.

Future Enrollment

The Treasury Department anticipates that the automatic enrollment system will create an additional two million accounts annually. The department stated that eligible individuals should not lose the opportunity to receive contributions or investment growth simply because an adult has not completed the election process.

While automatic enrollment is seen as a positive step to reduce friction, awareness of the program remains a concern, particularly among lower-income families who stand to benefit the most. Research indicates that financially secure individuals are often more knowledgeable about financial products. Experts emphasize the need for continued education and outreach, including materials in multiple languages and through trusted messengers.