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By Dan Gooding and Gabe Whisnant
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The Treasury Department has released new details on the Trump Accounts program, a tax-deferred investment option that provides a $1,000 government contribution for eligible children.
Treasury Secretary Scott Bessent said Wednesday parents will enroll by selecting the program on a newly created IRS form, known as Form 4547, when filing their taxes, after which a financial institution will open and manage the account. The funds must be invested in approved, low-fee options tied largely to U.S. stock indexes, with additional private contributions allowed each year.
The program was authorized under President Donald Trump’s tax and spending law and is open to households of any income with qualifying children.
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Why It Matters
Bessent emphasized that this was not a government program, instead framing it as a blend of Wall Street and Main Street that would teach children the value of savings and investments. The program is one of the largest private-public partnerships of its kind for children in the United States.
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What To Know
Bessent said Wednesday that every American was a shareholder and would benefit from the nation's growth, the driving idea behind the Trump Accounts, along with increasing financial literacy among young people.
The secretary said that the $1,000 deposited by the government into each new account could grow to over $600,000 by the time the child retires. If families invested $5,000 per year, the fund could reach $1 million.
For now, children born between January 1, 2025, and December 31, 2028, will be eligible for the accounts. To sign up, parents will use the new IRS Form 4547, which appeared to reference Trump's terms in office, with Bessent calling it the "most aptly named tax document of all time."
Once a financial institution receives the initial funds, the child's account will be activated, and the money will be invested into pre-approved funds.
Bessent said the U.S. Treasury would use the accounts to teach children about compound growth, with help from their family, friends, and employers, who would contribute cash.
Private donations are also being used to fund the program, from a number of wealthy philanthropists who are contributing to particular states' funds, such as Ray Dalio, founder of Bridgewater Associates, who Bessent announced Wednesday was contributing $75 million for Connecticut children.
Other contributors include Susan and Michael Dell, behind Dell Computers, who have pledged $6.25 billion for children aged 10 and younger as an incentive to save for the future.
Bessent said the Trump administration was working with state leaders to see how states could encourage participation and contribute funds, with 20 states on board so far.
What People Are Saying
Treasury Secretary Scott Bessent, speaking Wednesday: "Trump accounts are not a government program, they are a radically new platform that returns us to a social contract, anchored in individual ownership where everyone starts life on an investing journey. By giving each newborn citizen a material stake in the American dream, through Trump accounts, President Trump is embedding future investors on every rung of the economic ladder."
Michael Dell, founder and CEO of Dell Technologies, previously told CNBC about the accounts: "It’s designed to help families feel supported from the start and encourage them to keep saving as their children grow," adding that we "know that when children have accounts like this, they’re much more likely to graduate from high school, from college, buy a home, start a business and less likely to be incarcerated."
What Happens Next
A new website was unveiled on Wednesday for the Trump Accounts, promising children will be able to track their investments through a new app.
Families can start contributing to the Trump accounts on July 5, 2026. They cannot access the money until the child turns 18.
Update 12/17/25, 12:36 p.m. ET: This article was updated with additional information.
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