The U.S. Treasury Department officially launched "Trump Accounts" on July 4, 2026, a new program of tax-advantaged investment accounts for children. Established under the One Big Beautiful Bill Act, the program provides $1,000 in federal seed money to children born during the current presidential term. Other children with Social Security numbers are eligible to open accounts, though they do not receive the initial federal deposit.
According to Treasury officials, more than 6 million accounts were requested prior to the launch, including 1.4 million eligible for the $1,000 grant. The program allows for annual contributions of up to $5,000 from parents and $2,500 from employers. Recent administration updates also permit the donation of corporate stock shares into these accounts. The Social Security Administration has announced plans to facilitate enrollment for newborns at hospitals.
Supporters of the program, including Senator Ted Cruz (R-Texas) and Senator Cory Booker (D-N.J.), characterize the accounts as a tool for wealth-building, particularly for disadvantaged youth. Treasury spokespeople stated that 86 percent of early signups came from families earning less than $200,000 annually. Republicans have indicated they intend to highlight the program during upcoming campaigns to address voter concerns regarding the cost of living.
Critics of the policy, such as Professor Christian Weller of the University of Massachusetts, Boston, argue the accounts could function as regressive tax shelters that primarily benefit wealthier families. Other analysts have raised concerns regarding the manual opt-in process, suggesting it may limit participation among low-income families. While some Democrats support the underlying concept of "baby bonds," they have called for making the benefits permanent and simplifying the enrollment process.