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What Are Trump Accounts?
The “Trump Account” is a new tax-advantaged investment vehicle for children under 18, created by the One Big Beautiful Bill Act (OBBBA) passed in July 2025 . The centerpiece: a $1,000 government seed deposit for every child born between 2025 and 2028 .
Parents, grandparents, employers, and even friends can contribute up to $5,000 annually (employer contributions capped at $2,500) . Funds are invested in low-cost index funds tracking U.S. equities, growing tax-deferred until the child turns 18 . At that point, the account converts to a traditional IRA—withdrawals are taxed as ordinary income .
The Treasury estimates the untouched $1,000 could grow to roughly $5,800 by age 18. With maximum annual contributions, the balance could exceed $300,000 by adulthood .
How to Claim the $1,000 Bonus
Important: The $1,000 is not automatic. Parents must actively enroll .
To claim the federal deposit:
- File IRS Form 4547 with your 2025 tax return (due April 15, 2026) or through an online portal expected to launch this summer .
- Each form covers up to two children; file additional forms for larger families .
- Treasury will deposit the $1,000 directly into the account after authentication (starting July 2026) .
Eligibility: Children must be U.S. citizens with Social Security numbers, born between January 1, 2025, and December 31, 2028 .
Corporate America Is Matching Contributions
Several major employers have pledged to match the $1,000 government deposit for employees’ eligible children :
| Company | Commitment |
|---|---|
| JPMorgan Chase | Match $1,000 |
| Bank of America | Match $1,000 |
| Wells Fargo | Match $1,000 |
| Intel | Match $1,000 |
| Robinhood | Match $1,000 |
| Steak ‘n Shake | Match $1,000 |
Additionally, Michael Dell and his wife Susan have pledged $6.25 billion to provide a $250 supplement for up to 25 million children living in households with median incomes under $150,000 . Hedge fund founder Ray Dalio has committed $250 per child for roughly 300,000 children in Connecticut under similar income criteria .
The Economic Debate: Asset-Building or Inequality-Widening?
While Trump calls the program “one of the most transformative policy innovations of all time,” economists are sharply divided .
The Optimists’ View: Supporters argue the accounts encourage long-term saving, give every child “skin in the game,” and provide a meaningful nest egg—especially with corporate matching . Venture investor Brad Gerstner, who helped shape the program, calls it a way to make “every child a shareholder in American companies” .
The Critics’ Case: Economists warn the program could widen the racial wealth gap . The $1,000 seed is the same for everyone, but additional contributions—which drive the lion’s share of growth—favor families with means . A child whose family maxes out contributions could leave childhood with a six-figure account; one whose family cannot contribute extra may end up with only a few thousand dollars .
“Allowing those who are richer to put more in than those who are poor runs counter to any notion that there’s any kind of redistributive justice taking place,” said William Darity, an economist at Duke University .
Critics also note that the OBBBA cuts $1.2 trillion in federal spending, primarily from Medicaid and SNAP—programs that serve low-income families . “It’s like a ‘let them eat cake’ strategy,” said David Radcliffe, a policy director at The New School .
The Alternative: Baby Bonds
Many economists advocate for an alternative: “baby bonds,” which would provide larger government deposits for children from low-wealth families, automatically, without opt-in requirements . A 2019 study found such a program could reduce the Black-white wealth gap among young adults by 91% . Connecticut, California, and Washington, D.C., have already enacted baby bonds-style programs .
What’s Next
- April 8, 2026: Comment deadline on pilot program regulations
- April 15, 2026: Deadline to file Form 4547 with 2025 tax returns
- July 4, 2026: First contributions allowed and online portal expected to launch
- July 2026: First Treasury deposits begin
