The US government is essentially opening brokerage accounts for babies. Under a new initiative embedded in the One Big Beautiful Bill Act, every child born between January 1, 2025, and December 31, 2028, will receive a $1,000 seed deposit from the US Treasury, invested into domestic equity index funds or ETFs.
The accounts, officially branded as “Trump Accounts,” function like a junior IRA. Parents manage them custodially until the child turns 18, at which point the funds unlock for education, homeownership, or starting a small business. Growth is tax-deferred the entire time.
How the money works
The Treasury kicks in $1,000 at birth. After that, family members, employers, and community sources can contribute up to roughly $5,000 annually. Those additional contributions are not tax-deductible for the people making them.
Employer contributions get recognized up to $2,500, though again, employees can’t deduct those amounts. All investment gains compound tax-deferred until withdrawal at age 18.
