US President Donald Trump is scheduled to deliver a significant address on Wednesday, January 28, at 11 a.m. ET, introducing a novel government-supported investment initiative termed "Trump Accounts." The announcement was confirmed by White House press secretary Karoline Leavitt, who highlighted the program's origins in the administration's comprehensive tax and spending legislation, referred to as the "One Big Beautiful Bill."
What Are Trump Accounts?
Under this newly enacted law, the US Treasury will allocate $1,000 into an investment account for every American child born between January 1, 2025, and December 31, 2028. These accounts are established exclusively in the child's name, with parents or legal guardians serving as custodians until the child reaches the age of 18.
Families, employers, or friends can make annual contributions up to a cap of $5,000, while donations from nonprofit organizations and government entities are exempt from this limit. Notably, parental contributions cannot commence until July 4, 2026, a date that aligns with the nation's 250th anniversary celebration.
How the Money Works
The funds deposited into Trump Accounts must be invested in low-cost index funds that primarily track US companies. These accounts remain locked until the child turns 18, at which point they automatically transition into individual retirement accounts (IRAs). Withdrawals are governed by standard IRA regulations, with allowances for qualified expenses such as education, first-time home purchases, or starting a business.
While Trump Accounts offer fewer tax advantages compared to 529 college savings plans, they provide greater flexibility by permitting contributions from a wider array of sources, including employers, philanthropists, and state governments.
Corporate and Philanthropic Backing
Treasury Secretary Scott Bessent has emphasized the administration's efforts to encourage wealthy donors and corporations across all 50 states to support this initiative. Major companies like Visa and BlackRock have already pledged to contribute to the accounts of their employees' children.
In a notable philanthropic gesture, hedge fund billionaire Ray Dalio and his wife Barbara have committed $250 each to 300,000 children in Connecticut, amounting to a total pledge of at least $75 million. Additionally, billionaires Michael and Susan Dell announced a substantial $6.25 billion donation, promising $250 for 25 million children aged 10 and under in eligible ZIP codes nationwide.
Eligibility and Access
All US children under the age of 18 who possess a valid Social Security number are eligible for Trump Accounts. Parents can initiate these accounts using the newly created IRS Form 4547, either during tax filing or through an online portal expected to be operational by summer 2026.
President Trump has described this initiative as a "pro-family" effort designed to empower millions of Americans by leveraging the economy's strength to benefit the next generation. He stated that the program aims to give children "a big jump on life," underscoring its potential impact on future financial stability and opportunities.
