The Trump accounts, a savings vehicle named after President Donald Trump and authorized by congressional Republicans, are set to launch on Saturday, providing American parents with a new way to save for their children through investments in funds managed by major Wall Street firms.
Account Details and Government Contribution
All accounts established for children born between January 2025 and December 2028—covering nearly the entirety of Trump's second term—will receive a $1,000 government contribution. Parents, friends, and employers can deposit up to $5,000 annually into the accounts.
Trump has linked the accounts to the 250th independence celebration on Saturday and his personal brand. To open an account, the Internal Revenue Service directs parents to fill out form 4547, a reference to Trump as the 45th and 47th president.
Political Context and Midterm Elections
The debut comes as Republicans prepare for November's midterm elections, where they will defend their control of Congress amid voter concerns about the president's handling of the economy. Recent polls show Trump underwater on economic issues; a PBS News/NPR/Marist survey found two-thirds of respondents disapproved of his performance.
Legislation and Account Control
Created by the One Big Beautiful Bill Act—Trump's signature domestic policy measure passed by congressional Republicans last year—the accounts are controlled by parents or guardians until the child turns 18. After that, the child takes responsibility and can use the funds for college, a home, or a business.
Investment Management and Apps
The money is intended to be invested in funds tracking major Wall Street indices. The Treasury Department announced that all deposits will default into a State Street fund tracking the S&P 500. Funds from BlackRock and Vanguard will become available later. Bank of New York Mellon and Robinhood are developing an app to manage the accounts.
Donations from Billionaires
The government effort has attracted billionaire donations. Dell Technologies founder Michael Dell and his wife Susan contributed $6.25 billion for 25 million children under 10 in poor areas to receive an extra $250. Hedge fund manager Ray Dalio and his wife Barbara donated so about 300,000 children in lower-income Connecticut areas get an additional $250.
GOP Framing and Economic Concerns
GOP lawmakers refer to the bill as the “Working Families Tax Cuts Act,” arguing families benefit from extended lower tax rates. However, polls indicate public concern over Trump's economic management.
