Trump Claims ‘Trump Accounts’ Will Give American Children A ‘Shot At Financial Freedom’ | Watch

Last Updated:January 29, 2026, 00:05 IST

Trump Accounts are savings schemes under Trump’s tax law, offering a $1,000 US Treasury deposit for every newborn whose parents open an account.

US President Donald Trump (Photo: AP)

US President Donald Trump has announced a new programme called Trump Accounts, which his administration says will help children build wealth and gain financial freedom. Trump said past presidents left future generations with debt, but his administration aims to leave children with real assets and a “shot at financial freedom."

“Every President in modern history has left our children with nothing but debt but under this Administration, we’re going to leave every child with real assets and a shot at financial freedom," said Trump.

What are Trump Accounts?

Trump Accounts are a new type of savings account created under President Trump’s tax legislation. If parents open an account for a newborn child, the US Treasury will deposit $1,000 into it. The money will be invested in the stock market by private firms and cannot be accessed until the child turns 18.

When the child reaches adulthood, the funds can only be used for specific purposes, such as paying for education, starting a business, or making a down payment on a home.

Trump on Trump Accounts: "Every President in modern history has left our children with nothing but debt — but under this Administration, we're going to leave every child with real assets and a shot at financial freedom." pic.twitter.com/DHsXA5uDIB— Breaking911 (@Breaking911) January 28, 2026

How the money is managed?

Private banks and brokerages will manage the accounts. The funds must be invested in U.S. equity index funds that track the stock market. Annual fees are capped at 0.10 per cent.

Parents can add up to $2,500 a year in pretax income. Employers, relatives, friends, local governments and charities can also contribute. Total yearly contributions are limited to $5,000, excluding money from governments and charities.

Who Qualifies for the $1,000?

The $1,000 government contribution is only for babies born between January 1, 2025, and December 31, 2028. The child must be a US citizen and have a Social Security number. Any parent can open an account, regardless of immigration status.

The money cannot be withdrawn before age 18 except in rare cases, and withdrawals will be taxed.

Accounts for older children

Children born before 2025 are not eligible for the $1,000 payment, but parents can still open accounts for them if they are under 18. Contributions of up to $2,500 a year are allowed.

Some private donors are offering support. Michael and Susan Dell have pledged $6.25 billion to provide $250 to certain children aged 10 and under. Ray Dalio and his wife Barbara have pledged $75 million for children in Connecticut. Several major companies are also involved in the programme.

How to open an account?

Accounts will open for contributions in July 2026. Parents can register using IRS Form 4547 when filing taxes or through an online portal launching this summer. Registration is required to receive any government contribution.

Supporters say Trump Accounts will introduce more Americans to the stock market and give children from poorer backgrounds a chance to build wealth. They also say the plan strengthens capitalism.

Critics argue the accounts do not help children during their early years, when support is most needed. They also say the programme could widen wealth inequality, as richer families can contribute more. Even with the $1,000 deposit, critics note the money would grow to only about $3,570 over 18 years at a 7 per cent return.

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