Trump Accounts for Children Open With More Than 6 Million Sign-Ups

The federal government’s new investment accounts for children launched over the holiday weekend, with more than 6 million children already signed up, according to PBS News and Semafor. President Trump marked the launch of the Trump Accounts in the Oval Office, PBS reported. The accounts were created by the One Big Beautiful Bill Act, the tax and spending law passed last year, and launched on July 4, the nation’s 250th anniversary, according to Semafor.

Under the program, every American child up to age 18 is eligible, and families opt in through a tax form. The accounts are invested in a low-cost stock index fund; Semafor noted that the law requires investments to track indexes. Families can contribute up to $5,000 a year, according to PBS. The government adds $1,000 in seed money for children born between January 1, 2025, and the end of 2028. PBS reported that about 1.4 million of the enrolled children were young enough to qualify for it.

Employers, philanthropists and states can also contribute. PBS counted 87 companies, foundations, individuals and states that had announced contributions, with Susan and Michael Dell the first. Texas said it would add $1,000. Michael Dell told PBS that investing in children is the smartest investment.

Supporters see the accounts as a way to bring families who have little stock ownership into the market. Brad Gerstner, an entrepreneur behind the Invest America campaign, told PBS his aim is to bring in Americans who feel left out and left behind, and that failure would be accounts not claimed by the bottom third of the economic ladder. Ray Boshara of the Aspen Institute said the bottom half of the population owns 2.5 percent of the nation’s wealth and 1 percent of stocks and bonds, and called the accounts a down payment on a big idea that can and should be improved over time.

Critics argue the design favors families with money to spare. Amy Matsui of the National Women’s Law Center told PBS that wealthier families would gain far more because most families cannot contribute $5,000 a year. By PBS’s illustration, a family that contributes the maximum could reach about $200,000 by adulthood, while one holding only the $1,000 seed might reach roughly $2,000 to $3,000 at a 6 percent return. Matsui also warned that families with less financial literacy, or less trust in government, may not open accounts.

Economist Teresa Ghilarducci, who co-wrote an earlier proposal with Kevin Hassett, now the president’s top economic adviser, said the accounts need reform, such as ending the tax advantage for families earning more than $250,000. She called them “better than nothing.” She also criticized the rules at age 18, when up to 25 percent can be used for a home, a business or college and the rest rolls into an individual retirement account with its usual penalties. That structure, she argued, penalizes the two-thirds of people who do not go to college.

The next test is take-up. The program depends on families choosing to enroll, and PBS reported that Gerstner defines failure as accounts not being claimed by the bottom third of the economic ladder, a measure that will take time to show.