Millions of Babies to Receive $1,000 Trump Accounts

Trump Accounts, the government backed savings program for American children, officially launch on July 4, when about 1.5 million newborns will each get $1,000 in seed money deposited by the U.S. Treasury to invest and grow until they turn 18.

In Brief

• Newborns born between January 1, 2025 and December 31, 2028 who are U.S. citizens with a Social Security number qualify for the $1,000 deposit.
• About 5 million children under 18 who already signed up will have their accounts activated on July 4, though without the newborn seed money.
• Up to 25 million kids age 10 or younger in qualifying ZIP codes may get an extra $250 gift from the Michael and Susan Dell Foundation.
• Families, relatives and employers can contribute up to $5,000 per child annually, a cap that adjusts for inflation after 2027.
• At age 18, the account converts into a traditional IRA and follows standard IRA rules.

How the Accounts Work and Who Gets What

The mechanics are fairly simple. A newborn who meets the criteria gets $1,000 from the federal government at launch. That money sits in an investment account and compounds over nearly two decades before the child ever touches it. Older children, up to age 18, can also open accounts and have them activated on July 4, but they miss out on the government's seed deposit. Instead, some of them may qualify for a separate $250 gift funded by the Michael and Susan Dell Foundation, limited to kids age 10 or younger in certain ZIP codes.

Beyond the government or foundation money, anyone can add to a Trump Account. Parents, grandparents, other relatives and even employers can contribute, with a combined annual limit of $5,000 per child. That ceiling will rise with inflation starting in 2027.

Why Treasury Officials Are Pushing This Now

Treasury Secretary Scott Bessent framed the program as a fix for a glaring gap in wealth building. Speaking at a Senate Finance Committee hearing earlier this month, he noted that close to 40 percent of Americans hold no stock market investments at all, meaning they have no ownership stake in the businesses they work for or buy from. Bessent described Trump Accounts as an attempt to change that starting at birth, calling the goal one where every American child grows up with some claim on private ownership and compound growth.

Is It Too Late to Sign Up for a Trump Account?

No. The Census Bureau counted roughly 73.1 million children under 18 living in the country in 2024, and only a fraction of them have accounts open so far, which leaves plenty of room for more families to enroll.

Setting one up doesn't require an act of urgency tied to the July 4 launch date. Parents can apply anytime through Trumpaccounts.gov or the IRS website using an existing or newly created account, and the Treasury has also rolled out a Trump Accounts app for setup and ongoing management. No contribution is required once an account is opened, though the government encourages families to add money so the balance has time to grow. The one hard rule is age: the child must be under 18. Everything else, including the $1,000 newborn bonus for babies born between January 1, 2025 and December 31, 2028 who are U.S. citizens with a Social Security number, depends on meeting that specific window and set of qualifications, so families who haven't looked into it yet still have a genuine opportunity to claim it.