The federal government has activated Trump Accounts, a new savings vehicle established under the One Big Beautiful Bill. Officially open for contributions as of July 4, 2026, the program provides eligible children with a one-time $1,000 deposit from the US Treasury. Nearly six million children have already enrolled, with over one million families securing the initial government seed capital.
Parents, relatives, and employers may now contribute up to $5,000 annually for beneficiaries under age 18. Eligibility for the Treasury deposit is restricted to children born between January 1, 2025, and December 31, 2028. Funds are strictly allocated to low-cost mutual funds and ETFs tracking major US equity benchmarks like the S&P 500. Individual stock picks and alternative assets remain prohibited.
Upon reaching age 18, these accounts convert to traditional IRA tax treatment. Contributions grow tax-deferred, with withdrawals taxed as ordinary income during retirement. While digital assets are currently excluded, policymakers are discussing future expansions that could eventually include crypto ETFs or tokenized funds.
This initiative represents a structural tailwind for the passive investing ecosystem. Asset managers Vanguard, BlackRock, and State Street are positioned to capture significant inflows as the program scales. Philanthropists Michael and Susan Dell back the effort to expand financial access, though organizers acknowledge that awareness gaps may still limit participation among low-income families.