The US Treasury just unveiled one of the largest government-backed retail investment initiatives in recent memory: tax-advantaged investment accounts for American kids. The catch, at least for anyone reading this site, is that cryptocurrency is explicitly banned from the program.
The accounts, officially branded as “Trump accounts,” will allow companies, nonprofits, and state and local governments to donate shares of publicly traded stock into designated investment accounts for US citizens under 18. The program launches on July 4, 2026, and has already racked up over 6 million pre-registered accounts.
What the program actually looks like
Here’s the structure. Approximately 1.4 million children born between January 1, 2025, and December 31, 2028, qualify for a one-time $1,000 federal seed contribution under the 2025 reconciliation law.
Private contributions are capped at $5,000 per child annually, though federal, state, and certain charitable contributions fall outside that limit. All funds within the accounts must be invested exclusively in diversified US equity index funds or exchange-traded funds. The default allocation is a low-cost S&P 500 ETF.
