The federal government is about to become America’s most aggressive financial advisor for kids. Starting July 4, 2026, the Trump administration will roll out a new class of tax-advantaged investment accounts for US children under 18, complete with a $1,000 government deposit for those born between 2025 and 2028.

The timing is deliberate: the launch coincides with the 250th anniversary of the Declaration of Independence. The program, branded as “Trump Accounts,” is being implemented under the “One Big Beautiful Bill” passed in 2025.

How the accounts actually work

Children born between January 1, 2025, and December 31, 2028, who hold a valid Social Security number will automatically qualify for a $1,000 government seed contribution once their account is established. Older minors, those who won’t turn 18 before the end of the calendar year, can also open accounts but won’t receive the free money.

Parents or guardians serve as custodians until the child hits 18. Starting from the launch date, family members, employers, and others can contribute up to $5,000 per year. The growth is tax-deferred, which means no tax bills until withdrawals begin.

Accounts are restricted to low-cost US equity index funds with annual fees capped at 0.10%. Private financial institutions will manage the accounts. Firms like Goldman Sachs and Morgan Stanley are reportedly exploring employer-match programs, and philanthropic organizations are already stepping in. The Dell Foundation, for instance, is offering $250 matches in certain ZIP codes.

Pre-registration is already live through trumpaccounts.gov and IRS Form 4547. Between 4 and 6 million children have signed up so far, representing less than 10% of total eligible minors.

What’s notably missing: crypto

Multiple sources have confirmed that the program’s investment options do not incorporate any form of cryptocurrency or digital asset. The restriction to US equity index funds with rock-bottom fees reflects a philosophy far closer to Jack Bogle than to any DeFi protocol. Even within a pro-crypto administration, there is a clear distinction between encouraging institutional Bitcoin adoption and putting volatile assets into a program designed for 18-year time horizons starting from birth.

Market implications and what investors should watch

If the program scales to its full eligible population, tens of millions of accounts funneling up to $5,000 annually into US equity index funds would create a meaningful and recurring bid in the stock market, representing a structural tailwind for large-cap US equities.

The 10% pre-registration rate is the number to watch. The UK’s Child Trust Fund, a similar initiative launched in 2005, eventually reached near-universal enrollment before being scrapped in 2011 due to austerity measures.

With fees capped at 0.10%, the margins on individual accounts are razor-thin. The play for financial institutions isn’t the fee revenue, it’s the relationship: whichever firms custody these accounts get a direct line to tens of millions of future adult customers.