Trump announces 'baby accounts' plan to invest $1,000 for newborns

“Decades from now, I believe the Trump accounts will be remembered as one of the most transformative policy innovations of all time,” the president said at an event attended by many infants, highlighting his administration’s pro-family stance.

According to Reuters, the accounts, named after Trump, were created last year under a Republican tax and spending bill. They are scheduled to open over the next three years. The rollout comes ahead of the midterm elections in November, as Trump and the Republican Party aim to address issues of healthcare affordability.

The US Treasury announced that it will deposit $1,000 into investment accounts for every child born between 2025 and 2028. An estimated 25 million families are eligible for the funds.

The government will invest the money in low-cost index funds with tax-deferred growth - capital gains tax will only be paid when the funds are withdrawn.

Official accounts are set to launch on July 4, 2026. Treasury Secretary Scott Bessant said that over 500,000 families have already registered.

Trump stated that the program’s success will be measured not only by the wealth created but also by how young people buy homes they never dreamed of. It will be reflected in earned degrees, companies founded, families started, and children born.

The White House is encouraging families to make additional contributions to these accounts, and some private investors have already donated substantial sums. Notably, entrepreneur Michael Dell and his wife, Susan, have invested $6.25 billion.

What these accounts could achieve

According to White House press secretary Karoline Leavitt, the accounts are designed to address the lack of savings accounts in many American families.

The Trump administration expects that, without additional contributions, a newborn’s account could reach around $5,800 by adulthood.

Leavitt added that if families contribute the maximum annual amount of $5,000, by the time the child turns 28, the account could accumulate nearly $1.1 million - though she did not explain how the administration arrived at this figure.

Financial analysts estimate that with maximum contributions, the investment portfolio could reach around $700,000 by age 28.

Meanwhile, major US companies such as Visa and IBM have promised to contribute to employee family accounts. Trump urged all employers in the country to follow their example.

Trump promised to distribute money

In November 2025, US President Donald Trump defended his tariffs, claiming that the revenue from them would allow at least $2,000 to be paid to every American.

However, shortly afterward, Treasury Secretary Scott Bessant clarified that implementing these payments would require approval from the US Congress.