New “Trump Accounts” for Kids: How the $1,000 Government Deposit Works

A new savings program for children is coming in 2026, and some families could receive a $1,000 government contribution after opening an account.

The program, known as Trump Accounts or Section 530A accounts, was created under a federal law signed in 2025 and is designed to help children build long-term savings from an early age.

What exactly is a Trump Account?

A Trump Account is a tax-advantaged investment account created for minors.

Parents or guardians open and manage the account until the child turns 18. During that time:

• The money stays invested
• Earnings grow tax-deferred
• Withdrawals are not allowed early

At age 18, the account converts into a traditional IRA and becomes the child’s responsibility.

Who can open one?

Children may qualify if they:

• Are under 18 when the account is opened
• Have a valid Social Security number

There are no income restrictions, so families using programs like SNAP can still participate.

Which children get the $1,000 deposit?

The federal government plans to contribute $1,000 for eligible newborns born between 2025 and 2028.

That deposit is expected to be added automatically after the program officially launches in July 2026.

Children outside that birth range can still have accounts opened for them, but they will not receive the government-funded deposit.

How the money grows

The accounts are tied to low-cost investment funds linked to the overall U.S. stock market.

That means:

• The balance can grow over time
• Returns depend on market performance
• The longer the money stays invested, the bigger the potential growth

Parents cannot use the account for short-term spending.

Can family members contribute?

Yes.

Contributions can come from:

• Parents
• Grandparents
• Employers
• Approved nonprofit or donor programs

The yearly contribution limit is $5,000.

When does the program officially begin?

The accounts are expected to officially open on July 4, 2026.

Families can already begin the registration process before the launch date.

Bottom line

Trump Accounts are designed as long-term investment accounts for children, with some eligible families receiving a $1,000 government contribution.

While the program has not fully launched yet, parents can already start preparing to open accounts ahead of the 2026 rollout.

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