The US government just opened a new savings vehicle for American kids, and it comes with a $1,000 starter check from Uncle Sam. Trump Accounts, established under the One Big Beautiful Bill signed into law on July 4, 2025, officially began accepting contributions on July 4, 2026, giving parents and families the ability to invest up to $5,000 annually on behalf of children under 18.
Nearly 6 million children have already signed up. That’s up from roughly 4 million earlier in 2026, with over 1 million opting for the initial $1,000 contribution from the US Treasury.
How Trump Accounts actually work
Children born between January 1, 2025, and December 31, 2028, are eligible for a one-time $1,000 deposit from the US Treasury. Beyond that initial seed, parents, family members, and even employers can contribute up to $5,000 per year. The money goes into low-cost mutual funds and ETFs that track major US equity indices like the S&P 500.
Once the account holder turns 18, the account converts to traditional IRA tax treatment. That means contributions grow tax-deferred, and withdrawals in retirement get taxed as ordinary income.
