The Trump administration has announced that nearly 70 million tax-advantaged investment accounts have been established for American children, following the completion of a mass automatic enrollment phase.
More than 60 million accounts were created through the enrollment process, ensuring every American child under 18 with a valid Social Security number has an account in their name. To access the funds, parents or guardians must claim the accounts via a dedicated mobile application. This process allows for the management of contributions and the unlocking of a one-time $1,000 seed payment for eligible children.
Financial records indicate that more than $4.5 billion has been deposited into the accounts since the program launched on 4 July. This figure includes $1.3 billion in seed contributions, $600 million from family and friends, and $2.6 billion in philanthropic gifts.
The initiative has seen high participation among middle- and lower-income households, with an estimated 80% of accounts linked to families earning less than $200,000 annually. Under the current structure, family and friends may contribute up to $5,000 per year, while employers can contribute up to $2,500, within the overall annual limit. To date, more than 70 companies have pledged contributions.
President Trump attended a ceremony to mark the milestone alongside Treasury Secretary Scott Bessent, IRS Chief Executive Frank Bisignano, and philanthropists Michael and Susan Dell and Brad Gerstner. The program, established under the Working Families Tax Cuts legislation, aims to build long-term wealth through compound growth, with projected retirement balances estimated at $500,000 for some participants.
