US President Donald Trump on Wednesday outlined a sweeping proposal aimed at reshaping how young Americans build wealth, announcing a government-backed savings plan for children that he said could channel trillions of dollars into the next generation.
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The initiative, called “Trump Accounts,” was presented in Washington alongside Treasury Secretary Scott Bessent and forms part of Trump’s flagship legislative package, the One Big Beautiful Bill Act.
At the heart of the proposal is a federally managed investment account designed to give children an early financial foothold. Trump described the plan as a historic step toward reducing wealth inequality by ensuring every child begins life with a financial asset in their name.
How the plan would work
Under the proposal, the US Treasury would automatically deposit $1,000 into an investment account for every American child born between January 1, 2025, and December 31, 2028. The accounts would be tied to the child’s Social Security number and invested in a broad-based stock market index fund.
The program would also extend to all American children under the age of 18, allowing families to open similar accounts even if their child was born outside the initial eligibility window.
While the federal government would provide the initial deposit, families and supporters would be allowed to add funds. Parents, employers, faith-based organizations, state governments, and relatives could collectively contribute up to $5,000 more to each account.
Trump said the combination of early investment, steady contributions, and long-term market growth could dramatically increase account values by the time children reach adulthood.
Access to funds
Account holders would not be able to access the money freely. Withdrawals would be permitted once the child turns 18, and only for specific purposes such as paying for education, purchasing a home, or starting a business.
Trump argued that these restrictions would encourage productive use of the funds while promoting entrepreneurship, homeownership, and workforce participation.
Enrollment and rollout
Although the proposal has been formally announced, the program will not accept contributions until July 2026. Parents of eligible children can begin the sign-up process now through IRS Form 4547, though the form had not yet been published online as of Wednesday.
According to the White House, families who register will receive follow-up instructions in May. A dedicated government website for full enrollment is expected to launch in July.
