Trump Accounts Launch July 4 with 1000 Dollar Federal Seed Money for Children

A new federal investment program for children launched on July 4, 2026. Called Trump Accounts, the program creates tax-advantaged investment accounts for children under 18, with the government providing seed money for eligible children.

Children born between January 1, 2025, and December 31, 2028, who are U.S. citizens with a Social Security number, receive a one-time 1,000 dollar federal deposit. Families, individuals, and employers can contribute up to 5,000 dollars per year per child, with that limit indexed for inflation after 2027.

The accounts function similarly to traditional IRAs. Funds grow tax-deferred during a growth period that lasts until the end of the year the child turns 17. At age 18, the account converts to a traditional IRA. Withdrawals before age 59 and a half are generally subject to income tax and a 10 percent early withdrawal penalty, with exceptions for higher education, first-time home purchases up to 10,000 dollars, and certain medical or emergency costs.

During the growth period, investments are restricted to broad U.S. equity index funds with annual fees capped at 0.1 percent. The Treasury designated the State Street SPDR Portfolio S&P 500 ETF as the default investment. Accounts can be opened through IRS Form 4547 or the official portal at TrumpAccounts.gov, with activity tracked through a mobile app developed by Robinhood and BNY Mellon.

Six million children were enrolled by early July. The Michael and Susan Dell Foundation provided 6.25 billion dollars to fund 250 dollar deposits for up to 25 million children age 10 or younger living in ZIP codes with median incomes below 150,000 dollars. Dalio Philanthropies pledged similar gifts for specific regions.

Treasury officials warned the public to use only official channels to avoid scams.