Federal Trump Accounts for Kids Launch July 4

A new federal investment program for children, known as Trump Accounts, is launching this week as part of a broader initiative to encourage long-term saving and build wealth. The accounts, established under the One Big Beautiful Bill Act signed by President Donald Trump, will become available on Saturday, July 4, 2026.

The program creates tax-advantaged custodial accounts for children under 18 with a Social Security number. A key feature is a one-time $1,000 federal deposit for eligible newborns, but this seed money is restricted to U.S.-citizen children born between January 1, 2025, and December 31, 2028. Parents or legal guardians must actively open an account and opt into the pilot program to receive the government contribution; it is not automatic.

Once established, the accounts function as investment vehicles where savings grow tax-deferred. Parents, relatives, employers, and other approved contributors can add money annually, subject to a combined limit of $5,000 per year. Employers may contribute up to $2,500 annually, which counts toward the overall limit. The funds must be invested in low-cost, broadly diversified U.S. stock index funds or exchange-traded funds designed...