US President Donald Trump has officially unveiled a large-scale financial initiative aimed at building capital for future generations of Americans. Under the new program, every child born in the US between January 1, 2025, and December 31, 2028, will receive a starting investment deposit of $1,000 from the federal government. This is reported by UNN.
Details
According to the decree, the funds will be automatically credited to specially created "Trump Accounts" - tax-advantaged instruments linked to US stock market index funds, such as the S&P 500. Parents or guardians will manage the accounts, but money cannot be withdrawn until the child reaches 18 years of age. The program anticipates that due to compound interest, the initial amount could multiply several times by the time the beneficiary reaches adulthood.
In addition to the government contribution, families and employers will be able to voluntarily contribute up to $5,000 annually to these accounts. All investment gains on these accounts will be tax-protected until the funds are withdrawn. According to the administration's estimates, the accumulated money can be used as a down payment for a mortgage, to pay for higher education, or to start one's own business.
Political context and program conditions
The program is part of Trump's broader economic plan, designed to engage the working class in the stock market and stimulate national economic growth. However, only children who are US citizens and have a valid social security number will be eligible for the $1,000 government contribution. This decision aligns with the president's recent executive orders to tighten birthright citizenship rules.
The initiative has already received support from big business: executives from giants such as Goldman Sachs, Uber, and Dell have announced their readiness to integrate the "Trump Accounts" system into their employee benefits packages. It is expected that the opening of accounts and the first payments from the Treasury will begin on July 4, 2026, after the technical platform is developed.