The United States has launched "Trump accounts," a new savings vehicle named after President Donald Trump and authorized by congressional Republicans. These accounts, created under the One Big Beautiful Bill Act—the signature domestic policy of Trump’s second term—are designed to help American parents save money for children born between January 2025 and December 2028.

Each account will receive an initial $1,000 government contribution. Parents, friends, and employers can deposit up to $5,000 annually. The accounts remain under parental control until the child turns 18, after which the child can use the funds for college, buying a home, or starting a business.

Money in the accounts is invested in funds tracking major Wall Street indices. The US Treasury Department announced that deposits will default to a fund managed by State Street, which tracks the S&P 500 index. Earlier this year, the Treasury also announced that Bank of New York Mellon and Robinhood will develop an app to manage the accounts.

The initiative has attracted billionaire donations, including a $6.25 billion contribution from Dell Technologies founder Michael Dell and his wife Susan, aimed at providing an extra $250 to accounts of 25 million children under 10 living in poor areas.

To open an account, parents must fill out IRS form 4547, a nod to Trump’s terms as the 45th and 47th president. The launch coincides with the US 250th independence celebration and comes as Republicans prepare for the November midterm elections.

Sources