Government Opens Investment Accounts for 70 Million Children

2026-10-08 politics

Washington, Wednesday, 7 October 2026.
Nearly 70 million children have been automatically enrolled in new tax-deferred investment accounts, but parents must claim them via an official app to receive federal seed funding.

Administration Confirms Auto-Enrollment Milestone

President Donald Trump formally announced from the Oval Office on Wednesday, 7 October 2026, that automatic enrollment for children’s investment accounts is now live [2]. The White House confirmed that nearly 70 million accounts have been created, with the majority opened via the automatic feature [1]. Treasury Secretary Scott Bessent stated that this initiative aims to give every American child the opportunity to build generational wealth [7]. The program, known as Trump Accounts, represents a significant expansion of access to savings accounts for children across the country [1]. While accounts are automatically created, the administration notes that parents or guardians must actively claim them to access federal seed funding [4]. As of the announcement, approximately 10 million out of the 70 million accounts are funded, representing 14.286 percent of the total created accounts [2]. This rollout follows a program launch on 4 July 2026, after which the IRS developed a method to create auto accounts for over 60 million children [4].

Funding Structure and Eligibility Criteria

Children born from 1 January 2025 through 31 December 2028 are eligible for a one-time $1,000 contribution from the Treasury Department into the accounts [1]. Eligibility for a Trump Account extends to all children under 18 with a valid Social Security number, but the federal seed contribution is restricted to the specific birth window [3]. Private contributions from family and friends are permitted up to $5,000 annually per child [7]. Employers may also contribute up to $2,500, which counts against the $5,000 personal cap [7]. The money in the accounts is turned over to private firms that invest it in index funds, a type of mutual fund that tracks the stock market [2]. Children cannot access the money until they turn 18, and it can only be used for specific purposes, like attending school, starting a business, or buying a home [2]. Temporary regulations permit direct stock donations to Trump Accounts provided the assets are held for at least five years before sale [4].

Parental Action Required for Access

To receive the $1,000 Treasury seed contribution, eligible families must complete additional steps beyond the automatic enrollment process [3]. Parents and guardians must claim the accounts before managing them or allowing contributions from family, friends, and employers [1]. The claiming process requires downloading the official Trump Accounts app available on iOS and Android [8]. During the claiming process, a parent or guardian will verify their identity and relationship to their child, review the child’s information, and accept the account terms [7]. Benefits attorneys warn the program’s success depends on parents claiming them, noting potential implementation coordination challenges [4]. Philanthropists Michael and Susan Dell have pledged $6.25 billion to help fund accounts for children who do not qualify for government seed funding [4]. The administration promotes the program as a wealth-building tool, though critics continue to debate the fiscal cost and market risks [3].

Sources

Trump Accounts Child IRAs