A new federal investment initiative dubbed “Trump Accounts” was unveiled this week as a signature economic policy aimed at expanding private ownership and long-term wealth building for American families, with supporters calling it a transformative step toward a nationwide “shareholder society.”
In a wide-ranging speech, administration officials and allies framed the program as one of President Donald Trump’s most enduring legacies, alongside tax cuts, trade reforms, and border security. The initiative provides government-seeded investment accounts for children, designed to grow over time through compound market returns and additional private contributions.
Under the plan, every American child born between January 1, 2025, and December 31, 2028, is eligible to receive a $1,000 contribution from the U.S. Treasury, automatically invested in an index fund. Families can activate the account by checking a box on a federal tax form. According to the administration, roughly 500,000 families have already elected to open accounts during the early days of the 2026 tax filing season.
Officials said that based on historical market growth, the initial $1,000 investment alone could grow to an estimated $500,000 or more by retirement age.
Children under 18 who do not qualify for the Treasury seed funding can still open tax-advantaged Trump Accounts and receive contributions from parents, employers, philanthropists, and state governments.
Beginning July 4, in conjunction with the nation’s 250th anniversary celebrations, individuals and employers will be able to contribute up to $5,000 per year into each account. The administration’s Council of Economic Advisers estimates that consistently maxed-out contributions could result in accounts exceeding $1 million by a child’s late 20s and potentially reaching tens of millions by retirement.
A growing list of major corporations has announced plans to match employee contributions, similar to 401(k) benefits. Companies cited include Charles Schwab, Uber, Bank of New York Mellon, State Street, Mastercard, Visa, Robinhood, SoFi, Dell Technologies, Intel, IBM, JP Morgan, Comcast, Chipotle, Coinbase, and others.
Supporters say Trump Accounts can be used after age 18 for continued retirement savings, higher education expenses, or home purchases.
The initiative also places heavy emphasis on philanthropic funding. Wealthy donors and charitable organizations are being encouraged to contribute directly into children’s accounts, bypassing traditional nonprofit overhead.
Michael and Susan Dell have pledged $6.25 billion to help fund Trump Accounts for 25 million children under 10, while Ray and Barbara Dalio announced a $75 million commitment aimed at supporting more than 300,000 children in Connecticut.
The Treasury Department has also launched a “50 State Challenge,” urging philanthropists to sponsor accounts across individual states.
State governments are being encouraged to participate as well, with administration officials working with governors to develop funding models and pilot programs.
Backers of the initiative framed Trump Accounts as a philosophical shift away from government dependency and toward private ownership.
“Trump Accounts collapse the distinction between earners and owners by making everyone an owner,” the speaker said, describing the program as a fusion of Wall Street and Main Street prosperity.
Officials also tied the accounts to financial literacy efforts, arguing that giving children a real investment to track over time will provide hands-on education in savings, compound growth, and long-term planning. Funds will remain locked until age 18, reinforcing long-term investment behavior.
Some funding may be linked to completion of financial education courses, giving states and organizations flexibility to design literacy programs.
In closing, supporters connected the initiative to the nation’s founding ideals of property ownership and economic opportunity, calling Trump Accounts the “defining policy” of America’s 250th anniversary.
Administration officials said the program aims to eventually ensure that every American owns assets in the financial markets, reducing the number of adults without stock ownership to zero over time.
While praised by proponents as a revolutionary step for wealth creation, the program is expected to generate debate in Congress and among economists over cost, equity impacts, and long-term fiscal implications.
The first full wave of expanded contributions is set to begin July 4, 2026.
By BSB Staff