Trump Announces Automatic Enrollment for Children in New Investment Program

On Wednesday, President Donald Trump revealed that approximately 70 million children under 18 in the U.S. will be automatically enrolled in what are termed “Trump Accounts.” This initiative aims to increase access to a federal investment program intended to foster long-term wealth for future generations.

During a live announcement at the White House, Trump described the accounts as a family-friendly endeavor meant to encourage capitalism and provide young Americans with a financial foundation before they enter adulthood.

He stated, “Today, I’m pleased to announce that every single eligible minor child in America has now been automatically enrolled in a Trump Account.”

The shift to automatic enrollment marks a significant change from the prior system, which required parents to actively register their children through paperwork.

The accounts were created as part of the Trump administration’s “One Big Beautiful Bill” (OBBB) legislation. As per the program’s guidelines, the U.S. Treasury Department contributes a $1,000 federal seed into stock market investment accounts for eligible children born between January 1, 2025, and December 31, 2028.

Children born before 2025 can still receive outside investments, but only those born within the set four-year period receive the initial $1,000 from federal funds. This money grows in tax-deferred accounts, available for qualifying expenses like education or buying a first home.

The move to automatic enrollment followed new guidance from the Treasury and the IRS aimed at simplifying access to the program. Earlier, parents or guardians needed to fill out IRS Form 4547 via a mobile app to establish an account.

However, officials noted that the old requirement led to millions of eligible children missing out on potential growth. By utilizing data from tax returns and Social Security records, the Treasury can now automatically create accounts, easing the process for families.

Although accounts are set up automatically, parents still need to go through a brief verification on the program’s website or app to manage these custodian accounts.

Aside from the initial federal funding, the program also relies on contributions from families, employers, and private donations. Individuals can contribute up to $5,000 per child annually, while employers can add up to $2,500 to that total.

During his remarks, Trump highlighted that including every child in the equity market ensures that families from all financial backgrounds can be part of the nation’s economic success.

He pointed out that nearly 8 million accounts had been created in the first three months of the Trump Accounts program, totaling more than $4.5 billion deposited since July 4. Trump has encouraged parents to download the official app to manage their children’s accounts.

Additionally, Susan Dell, spouse of Dell Technologies CEO Michael Dell, expressed that she and her husband have been touched by letters from children discussing their aspirations to become entrepreneurs, doctors, and nurses. She motivated parents to engage with the program.

The CEO of Dell Technologies announced that the company has funded 10 million Trump Accounts as part of a $6.25 billion commitment to contribute to children’s accounts.

As the program continues to grow nationwide, more than 60 million additional eligible children are now automatically enrolled, with significant amounts already deposited into the accounts thanks to contributions from major companies and philanthropists.

In a lighter moment, Senator Ted Cruz humorously suggested that children could request cash contributions to their Trump Accounts instead of traditional birthday gifts.