The U.S. Department of the Treasury announced that more than 60 million children under age 18 have been automatically enrolled in Trump Accounts following a proposed regulatory change introduced Tuesday. The accounts, officially launched July 4, are available to any U.S. child with a Social Security number and are designed as a savings and investment vehicle for minors.
Children born between 2025 and 2028 may be eligible for a one-time $1,000 Treasury contribution as part of a pilot program. However, automatic enrollment does not trigger this deposit automatically; families must actively claim accounts through the Trump Accounts application to activate the $1,000 seed contribution and enable other contributions from family members, friends, and employers. The Treasury also updated regulations to permit direct stock donations to these accounts, subject to a five-year holding period before sale. This change expands giving options beyond the previously allowed diversified, low-cost funds.
Private contributions have supplemented the federal program. Technology entrepreneur Michael Dell and his wife committed $6.25 billion to provide an additional $250 for children born between 2016 and 2024 living in lower-income ZIP codes. Approximately 14.4 million children across income levels are projected to qualify for the federal $1,000 seed funding, with 5.8 million from low- and moderate-income households.
Policy experts note that the shift to automatic enrollment addresses previous participation challenges. Under the prior opt-in system, fewer than 8 million children had enrolled as of mid-September, with only 5% participation among low- and moderate-income families. Researchers attribute low uptake to concerns about tax implications, public benefit impacts, and complexity surrounding contribution limits and withdrawal restrictions. Based on historical participation rates for similar federal programs, an estimated 20% of eligible children may not claim their available deposits.
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