The US government just opened millions of custodial investment accounts for kids, and the stock market is about to feel it.
The Trump Accounts program, launched around July 4, 2026 under the One Big Beautiful Bill Act of 2025, gives eligible children born between January 1, 2025, and December 31, 2028 a $1,000 Treasury seed deposit and a tax-advantaged pathway into US equities. More than 6 million families have already registered, though only about 1.4 million are projected to qualify for the federal seed contribution.
Every dollar flowing into these accounts is mandated to land in low-cost US equity index funds and ETFs. The default option is the State Street SPDR Portfolio S&P 500 ETF (SPYM). That’s the automatic allocation.
How the accounts actually work
Each qualifying child gets a $1,000 federal seed deposit at account creation. From there, families and employers can contribute up to $5,000 annually, with employer match options reaching an additional $2,500.
