President Donald Trump on Friday announced a new federal program called Trump Accounts designed to provide every eligible newborn American with a government-seeded investment account aimed at long-term wealth creation for families nationwide.
Under the proposal, the Department of the Treasury would automatically create tax-advantaged accounts for children born between 01/01/2025 and 12/31/2028 upon registration at birth, according to administration officials briefing reporters in Washington.
Each account would receive an initial $1,000 contribution from the federal government and allow families to add up to $5,000 annually through additional voluntary investments under current program guidelines released this week.
White House officials said the goal is to give young Americans a financial foundation that compounds over time and supports education, homeownership, entrepreneurship, and retirement planning across multiple life stages.
Press Secretary Karoline Leavitt said families making maximum contributions could see balances approach $1.1 million by age 28 based on historical market averages presented during the announcement at a public event Wednesday night.
Leavitt said she plans to enroll her own child while citing data suggesting many households can afford the annual contribution limit under existing income conditions, according to federal economic analysis released this month.
Administration estimates from the Council of Economic Advisors project a child born in 2026 could have roughly $300,000 by age 18 with full participation under assumptions of average long-term market returns.
Without additional contributions, officials estimate accounts would still grow to about $18,000 by age 28, providing a modest financial cushion for young adults during early-career years following education or workforce entry.
Trump said the initiative could move between $3 trillion and $4 trillion into accounts over 15 years, calling it a historic wealth transfer for future generations of American families, per the Daily Mail.
The program has attracted support from major corporations, financial institutions, and investors who appeared at the event and pledged backing through public statements, partnerships, and long-term commitments.
Participating firms include banks, asset managers, brokerages, and technology companies that officials say will help administer accounts and investment options through existing financial infrastructure regulated under federal law.
The administration said enrollment will open on 07/04/2026 using an online portal allowing parents to manage contributions and track balances securely with identity-verification tools provided by the Treasury Department.
Critics argue the contribution cap favors higher-income families, turning a public benefit into a tax-advantaged savings vehicle with unequal outcomes for lower-income households.
White House officials dispute that assessment, saying universal access and early compounding provide meaningful benefits regardless of contribution levels over long-term time horizons beginning at birth.
The announcement comes as the administration faces mixed polling on inflation and affordability while promoting Trump Accounts as a long-term response to economic anxiety nationwide.
