In a significant policy announcement, US Treasury Secretary Scott Bessent has introduced a new financial programme named 'Trump Accounts'. This initiative is designed to provide a government-backed financial foundation for American children, aiming to foster long-term wealth creation from birth.
Key Features of the Trump Accounts Programme
The programme is scheduled for a nationwide launch on July 4, 2026. It targets all US citizens under the age of 18. The core promise is a government-funded head start on savings and investments, described on its dedicated website as a way to give children "a big jump on life."
A major highlight is the $1,000 seed money provided by the US Treasury. This initial deposit will be made for every eligible American child born between January 1, 2025, and December 31, 2028. Crucially, no initial contribution from parents is required to activate this benefit.
How the Investment Accounts Operate
Each Trump Account is held entirely in the child's name. Parents or guardians act as sole custodians until the child turns 18. While the government provides the starting capital, families can optionally contribute up to $5,000 per year to accelerate the account's growth.
The funds are automatically invested in a portfolio of American companies. Account performance and holdings can be monitored through a dedicated mobile application, offering transparency to families.
Projected Long-Term Growth
The official website outlines potential growth over an 18-year period, demonstrating the power of compound interest:
- With $0 annual contribution: approximately $5,800
- With $250 per year: approximately $20,700
- With the maximum $5,000 per year: approximately $303,800
These projections are intended to illustrate how consistent investing, even in modest amounts, can yield substantial results over time.
Access, Tax Benefits, and Broad Support
Upon turning 18, the individual gains full control of their Trump Account. They can choose to continue investing or withdraw funds for major life expenses like higher education or purchasing a home. The accounts are designed to retain tax advantages similar to those of a traditional Individual Retirement Account (IRA).
The initiative has already garnered backing from prominent corporate and philanthropic entities. Supporters listed include Block, Uber, BNY, Charter, BlackRock, MasterCard, Visa, and philanthropists like Michael and Susan Dell and Ray and Barbara Dalio. More supporters are expected to join the coalition.
Framed as a pro-family, pro-growth policy, the Trump Accounts initiative seeks to directly connect the next generation to the US economy's strength. "This is a pro-family initiative that will help millions of Americans harness the strength of our economy to lift up the next generation," the official website states, positioning it as a foundational tool for building intergenerational wealth.
