The US government is now handing newborns a thousand bucks and parking it in the stock market. Every American baby born after December 31, 2024, is eligible to receive a one-time $1,000 federal contribution invested in low-cost S&P 500 index funds through the newly launched “Trump Accounts” program.
The accounts officially went live on July 4, 2026, timed to coincide with the nation’s 250th anniversary.
How the program works
Children born between January 1, 2025, and December 31, 2028, who hold US citizenship and a Social Security number, qualify for the $1,000 government seed investment. The money gets funneled into broad US equity index funds, primarily those tracking the S&P 500, with a hard cap on fees: a maximum annual expense ratio of 0.10%.
Beyond the initial seed, families and employers can contribute up to $5,000 per year into these accounts, with that cap adjusted for inflation over time. When the child turns 18, the account can convert into an Individual Retirement Account.
