The US government just opened investment accounts for more than 500,000 babies. Each one got a $1,000 head start, courtesy of Uncle Sam, with the money parked in funds that track the S&P 500.
President Donald Trump announced the milestone on July 6, confirming that the so-called “Trump Accounts” have begun receiving their federal seed deposits. The program, born out of tax legislation passed in 2025, is essentially a government-funded baby portfolio: eligible newborns get $1,000 deposited into an investment account they can access when they turn 18.
How the program actually works
Any US citizen child born between January 1, 2025, and December 31, 2028, with a valid Social Security number qualifies. The federal government kicks in $1,000. Families and employers can contribute up to $5,000 per year on top of that.
The investment options are deliberately narrow. All contributions must go into traditional mutual funds or ETFs that track the S&P 500. No individual stocks, no bonds, no alternatives.
