President Donald Trump has introduced a bold new idea to help American families build wealth from birth. Called the “Trump Accounts,” this plan promises to give every baby born in the United States between 2025 and 2028 a $1,000 investment account. The goal is to help young people start adult life with savings for education, a home, or starting a business.
What Are Trump Accounts?
Trump Accounts are part of the “One Big Beautiful Bill,” a large policy package backed by President Trump. This proposal passed the House of Representatives in June 2025 and is now being reviewed by the Senate. Since both chambers of Congress are controlled by Republicans, the plan is likely to become law soon.
Each child born in the U.S. from January 1, 2025, to December 31, 2028, will automatically receive a $1,000 investment account at birth. The money will be deposited as soon as the baby’s birth is registered. Parents do not need to apply—everything happens automatically.
How the Money Will Grow
These accounts will be tax-free while growing and invested in a stock market index. The idea is to let the money grow over time. According to the Milken Institute, that $1,000 could grow to about $574,000 in 60 years, assuming steady investment returns.
Parents, guardians, or relatives can also add up to $5,000 per year to the account until the child turns 18. These extra contributions will also be tax-free, giving families a chance to build a bigger fund for the child’s future.
When and How the Money Can Be Used
When the child turns 18 years old, they can use up to 50% of the account’s balance for specific goals like:
- Higher education (college or training)
- Buying a first home
- Starting a business
These withdrawals are taxed at capital gains rates, which are usually lower than regular income tax. The remaining balance stays invested until the child turns 30 years old.
At age 30, they can access the full amount with no restrictions. But if someone tries to take money before the allowed time, they will pay a 10% penalty and regular income tax on the withdrawal.
Who Is Eligible for Trump Accounts?
To get a Trump Account, a baby must:
- Be born in the United States between January 1, 2025, and December 31, 2028
- Have a valid Social Security Number (SSN)
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Have at least one parent who also has a valid SSN and is legally allowed to work in the U.S.
The government will check all these details when the baby’s birth is registered. After verification, the account will be created without the need for any extra forms or applications.
How Much Will This Program Cost?
There are around 3.6 million births in the U.S. each year, so the government could spend over $3 billion per year to fund this plan. This does not include the extra contributions families might make. Official budget estimates have not been fully published yet.
What’s Next for the Trump Accounts?
The Trump Accounts bill has already passed the House of Representatives and is now under review in the Senate. Lawmakers are trying to get the final approval by July 4, 2025. Once passed, the program will run until January 2029, covering all eligible babies born during that time.