US Government to Automatically Open Investment Accounts for 60 Million Children

2026-09-30 politics

Washington, Wednesday, 30 September 2026.
Beginning October 1, 2026, the U.S. Treasury will automatically enroll 60 million children into tax-deferred investment accounts, ensuring universal access and channeling billions in private donations to young Americans.

Regulatory Shift to Automatic Enrollment

The Treasury Department published guidance in the Federal Register on September 30, 2026, mandating the automatic creation of accounts, with auto-enrollment officially beginning on October 1, 2026 [1]. This temporary regulation replaces the previous requirement for parents to manually sign up via IRS Form 4547 or the Trump Accounts mobile app [1]. Treasury Secretary Scott Bessent stated that the agency anticipates reaching 70 million accounts within a month due to the shift to auto-enroll [4]. The move aims to increase participation rates among nonfilers and families with limited resources by removing the requirement for affirmative election by guardians [1]. The shift represents a projected increase of 63 million accounts from the previous enrollment baseline [3][4].

Legislative Origins and Eligibility Criteria

The accounts were established under the “One Big Beautiful Bill,” which President Trump signed into law in July 2025 [4]. Children born between January 1, 2025, and December 31, 2028, are eligible for a $1,000 government seed contribution [1]. Approximately 73 million children are eligible for the program, though only about 7 million had signed up prior to this regulatory change [4]. Children born outside the 2025-2028 window but under 18 may hold accounts but receive no government seed money [1]. Frank Bisignano, serving as both IRS chief executive and Social Security Administration commissioner, will lead the expansion of Trump Accounts [3].

Investment Mechanics and Donor Contributions

Private contributions allow up to $5,000 per year from friends, relatives, or employers, with notable pledges including $6.25 billion from Michael and Susan Dell [1]. Initial contributions are automatically invested in the State Street SPDR Portfolio S&P 500 ETF (SPYM), which serves as the sole available investment option at launch [8]. Implementation faces potential challenges as Trump Accounts architect Luke Pettit is reportedly leaving the Treasury for a role in the private sector in October [6]. Additionally, the IRS faces reduced funding and staffing following budget cuts that impact the agency’s capacity to manage the auto-enrollment process [3].

Sources

Federal Savings Policy Treasury Auto Enrollment