Trump Accounts launch July 4, aiming to build wealth for millions of US children
Nearly 6 million children have signed up for the new tax-advantaged investment accounts, but crypto is notably absent from the menu.
The US government just opened a new savings vehicle for American kids, and it comes with a $1,000 starter check from Uncle Sam. Trump Accounts, established under the One Big Beautiful Bill signed into law on July 4, 2025, officially began accepting contributions on July 4, 2026, giving parents and families the ability to invest up to $5,000 annually on behalf of children under 18.
Nearly 6 million children have already signed up. That’s up from roughly 4 million earlier in 2026, with over 1 million opting for the initial $1,000 contribution from the US Treasury.
How Trump Accounts actually work
Children born between January 1, 2025, and December 31, 2028, are eligible for a one-time $1,000 deposit from the US Treasury. Beyond that initial seed, parents, family members, and even employers can contribute up to $5,000 per year. The money goes into low-cost mutual funds and ETFs that track major US equity indices like the S&P 500.
Once the account holder turns 18, the account converts to traditional IRA tax treatment. That means contributions grow tax-deferred, and withdrawals in retirement get taxed as ordinary income.
The investment options are deliberately narrow. Only funds tracking major US equity benchmarks qualify. No individual stock picks, no alternatives, no speculative bets.
Crypto need not apply, for now
Digital assets and tokens are explicitly prohibited from Trump Accounts. There are discussions underway about potentially expanding eligible asset classes in the future, which could theoretically open the door to crypto ETFs or tokenized funds down the road.
What this means for investors
For traditional market participants, a government-backed program channeling new capital into low-cost index funds is structurally bullish for the passive investing ecosystem. Companies like Vanguard, BlackRock, and State Street, which dominate the index fund and ETF space, stand to benefit from the steady accumulation of assets under management.
The program is backed by philanthropic supporters including Michael and Susan Dell, who are focused on expanding financial opportunities for children in low-income families. Participation among those families may be limited by awareness gaps and procedural complexity, hurdles the initiative acknowledges.