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Trump accounts launch: America's first universal child investment program

Trump accounts launch: America's first universal child investment program

Rule Changes
By Newzino Staff | |

Federal government seeds $1,000 accounts for newborns, major banks and billionaires pledge billions more

January 30th, 2026: House Ways & Means Chair Endorses Program

Overview

The United States has never offered universal investment accounts to children. Starting July 4, 2026, every American born between 2025 and 2028 will receive $1,000 from the Treasury Department deposited into a stock market index fund—accessible at age 18 for education, homebuying, or starting a business. Over 1 million families enrolled in the program's first week.

The program has attracted unprecedented private and corporate support. Michael and Susan Dell pledged $6.25 billion to fund $250 accounts for 25 million children. Major financial firms—JPMorgan Chase, Bank of America, Wells Fargo, BlackRock, Charles Schwab, and Robinhood—will match the government's $1,000 for employees' children. Visa announced a platform allowing cardholders to direct credit card rewards into Trump Accounts. Tech giants Intel, Nvidia, and Comcast committed matching contributions. Billionaire Ray Dalio pledged $75 million for Connecticut children as the first participant in Treasury's '50-State Challenge.'

Key Indicators

1M+
Family Sign-ups
Enrollments in first week of 2026 tax season, doubling after White House summit
$6.25B
Dell Donation
Largest philanthropic gift ever devoted to American children's savings
25M
Eligible Children
Estimated beneficiaries of Treasury's $1,000 seed funding (births 2025-2028)
40+
Corporate Partners
Major companies offering matching contributions for employees' children

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People Involved

Scott Bessent
Scott Bessent
United States Treasury Secretary (Leading Trump Accounts rollout)
Brad Gerstner
Brad Gerstner
Founder of Invest America, CEO of Altimeter Capital (Primary architect of Trump Accounts policy)
Michael Dell
Michael Dell
Founder of Dell Technologies, Philanthropist (Pledged $6.25 billion with wife Susan)
Nicki Minaj
Nicki Minaj
Grammy-nominated rapper, Trump supporter (Pledged $150,000-$300,000 to fund fans' accounts)
Ray Dalio
Ray Dalio
Founder of Bridgewater Associates (Pledged $75 million for Connecticut children)
Jason Smith
Jason Smith
Chairman, House Ways and Means Committee (Strong supporter of Trump Accounts program)
Erika Kirk
Erika Kirk
CEO, Turning Point USA and Turning Point Action (Pledged matching contributions for employee children)

Organizations Involved

U.S. Department of the Treasury
U.S. Department of the Treasury
Federal Agency
Status: Administering Trump Accounts program

Federal agency responsible for seeding $1,000 into eligible children's accounts and overseeing program implementation.

Invest America
Invest America
Nonprofit Advocacy Organization
Status: Partnered with Dells on $6.25 billion gift

Nonprofit that conceived and advocated for universal child savings accounts, partnering with the Dell family on the largest children's philanthropy gift in history.

JPMorgan Chase & Co.
JPMorgan Chase & Co.
Financial Services Company
Status: Matching $1,000 for employees' children

America's largest bank by assets, announced $1,000 matching contributions to Trump Accounts for its 190,000+ U.S. employees' children.

BlackRock
BlackRock
Asset Manager
Status: Matching $1,000 for employees' children

World's largest asset manager, announced $1,000 matching contributions to Trump Accounts for employees' children.

Charles Schwab Corporation
Charles Schwab Corporation
Financial Institution
Status: Matching government contribution for employees

Major brokerage firm matching Trump Accounts contributions for employees' children.

Robinhood Markets
Robinhood Markets
Financial Technology Company
Status: Matching $1,000 for employees' children

Popular trading app offering Trump Accounts matching contributions.

VI
Visa Inc.
Financial Services Corporation
Status: Creating cash-back rewards platform for Trump Accounts

Global payments technology company enabling credit card rewards deposits into Trump Accounts.

Intel Corporation
Intel Corporation
Semiconductor company
Status: Matching $1,000 for U.S. employees' children

Semiconductor manufacturer offering Trump Accounts matching contributions.

Bridgewater Associates
Bridgewater Associates
Hedge Fund
Status: Founder Ray Dalio pledged $75M for Connecticut

World's largest hedge fund; founder committed to 50-State Challenge.

TU
Turning Point USA
501(c)(3) Nonprofit Organization
Status: Matching $1,000 for employees' children

Conservative activist organization offering Trump Accounts matching contributions for employee children born 2025-2028.

ST
Steak 'n Shake
Restaurant chain
Status: Matching up to $1,000 for employees' children

Fast-casual restaurant chain offering Trump Accounts matching contributions for employee children born 2025-2028.

Chipotle Mexican Grill
Chipotle Mexican Grill
Restaurant chain
Status: Committed to Trump Accounts contributions

Fast-casual restaurant chain supporting Trump Accounts program.

UB
Uber Technologies
Technology company
Status: Committed to Trump Accounts contributions

Ride-sharing and delivery platform supporting Trump Accounts program.

International Business Machines Corporation (IBM)
International Business Machines Corporation (IBM)
Technology Company
Status: Committed to Trump Accounts contributions

Technology and consulting company supporting Trump Accounts program.

MA
Mastercard
Financial services corporation
Status: Committed to Trump Accounts program

Global payments technology company supporting Trump Accounts initiative.

Block, Inc.
Block, Inc.
Financial technology company
Status: Committed to Trump Accounts program

Financial services and digital payments company (formerly Square) supporting Trump Accounts.

Coinbase Global
Coinbase Global
Cryptocurrency exchange
Status: Committed to Trump Accounts program

Cryptocurrency platform supporting Trump Accounts initiative.

Continental Resources
Continental Resources
Oil and gas company
Status: Committed to Trump Accounts program

Energy company supporting Trump Accounts initiative.

Broadcom Inc.
Broadcom Inc.
Semiconductor company
Status: Committed to Trump Accounts program

Technology infrastructure company supporting Trump Accounts initiative.

Chime Financial
Chime Financial
Financial technology company
Status: Committed to Trump Accounts program

Digital banking platform supporting Trump Accounts initiative.

SO
SoFi Technologies
Financial technology company
Status: Matching $1,000 for employees' children

Digital personal finance company offering Trump Accounts matching contributions.

Timeline

  1. House Ways & Means Chair Endorses Program

    Political

    Chairman Jason Smith calls Trump Accounts 'transformational for America's children,' stating they give millions a stake in the American economy regardless of background.

  2. Sign-ups Hit 1 Million

    Milestone

    Bessent announces enrollments doubled overnight following summit. JPMorgan, Bank of America, Wells Fargo confirm employee matching programs.

  3. White House Summit Launches Program

    Political

    President Trump and Treasury Secretary Bessent unveil program details at summit featuring Nicki Minaj. Major banks announce matching contributions.

  4. Visa Announces Cash-Back Platform

    Corporate

    Visa unveils platform allowing credit cardholders to deposit cash-back rewards directly into Trump Accounts, turning everyday purchases into children's savings.

  5. Tech Giants Commit Matching Funds

    Corporate

    Intel, Nvidia, and Comcast announce they will make contributions to Trump Accounts. Intel confirms it will match $1,000 for eligible U.S. employees' children.

  6. Financial Firms Announce Matching Programs

    Corporate

    BlackRock, Charles Schwab, Robinhood, SoFi, and BNY announce $1,000 matching contributions for employees' children, joining JPMorgan, Bank of America, and Wells Fargo.

  7. Tax Filing Season Opens

    Administrative

    Families begin electing Trump Accounts through Form 4547 with e-filed tax returns. 500,000 sign up within days.

  8. Dalio Pledges $75M for Connecticut

    Philanthropy

    Ray Dalio becomes first 50-State Challenge participant, committing $75 million to fund $250 accounts for 300,000 Connecticut children under 10 in households earning under $150,000.

  9. Dells Pledge $6.25 Billion

    Philanthropy

    Michael and Susan Dell commit largest-ever children's philanthropy gift, funding $250 accounts for 25 million children in lower-income zip codes.

  10. IRS Releases Enrollment Form

    Administrative

    Internal Revenue Service publishes Form 4547 allowing families to elect Trump Accounts with their tax returns.

  11. Trump Signs Bill Into Law

    Legislative

    President Trump signs One Big Beautiful Bill Act on Independence Day, establishing Trump Accounts as signature policy.

  12. House Passes Bill 218-214

    Legislative

    House approves One Big Beautiful Bill Act with zero Democratic votes. Trump Accounts set for July 4, 2026 launch.

  13. Senate Passes One Big Beautiful Bill 51-50

    Legislative

    Vice President JD Vance casts tiebreaking vote. Bill includes Trump Accounts provision creating $1,000 seed accounts for children born 2025-2028.

  14. Invest America Founded

    Origin

    Brad Gerstner establishes Invest America Foundation to advocate for universal child savings accounts and build political coalition.

Scenarios

1

Program Launches Successfully, Becomes Permanent

Discussed by: Treasury Department projections, White House Council of Economic Advisers, Invest America

The July 4, 2026 launch proceeds smoothly. The combination of government funding, corporate matching, and philanthropic support creates strong enrollment. Congress extends eligibility beyond 2028 births, making the program permanent. By 2044, the first cohort of Trump Account holders turns 18 with average balances between $5,800 (no additional contributions) and $303,000 (maximum contributions). The program becomes as politically untouchable as Social Security.

2

Wealth Gap Critics Force Program Redesign

Discussed by: Connecticut Treasurer Erick Russell, Brookings Institution, Representative Ayanna Pressley

Data shows wealthy families contribute maximum amounts while low-income families cannot add beyond the initial $1,000, creating what critics call 'a $150,000 nest egg for the rich versus $2,500 for the poor.' Congressional Democrats, pointing to the UK Child Trust Fund's mixed results and Senator Cory Booker's Baby Bonds proposal, push to add progressive contributions based on family income. A future Democratic administration restructures the program to include income-based seed funding.

3

Program Scaled Back Amid Deficit Concerns

Discussed by: Cato Institute, fiscal conservatives, Senate Budget Committee Republicans

The $25 billion federal cost for seed funding, combined with the One Big Beautiful Bill's $3.4 trillion price tag, prompts deficit hawks to target Trump Accounts. A future Congress eliminates the $1,000 government contribution while preserving the tax-advantaged structure, converting it to a voluntary savings program without universal seed funding. Corporate and philanthropic commitments partially fill the gap but reach fewer families.

4

Administrative Failures Mirror UK Problems

Discussed by: UK National Audit Office comparisons, Government Accountability Office, program critics

The program launches but encounters the same problems that plagued the UK's Child Trust Fund: families forget accounts exist, providers lose contact with beneficiaries, and when the first cohort turns 18 in 2043, 40% of funds remain unclaimed. Complexity around qualifying withdrawals creates confusion. Reform efforts focus on simplifying access and improving outreach.

Historical Context

UK Child Trust Fund (2002-2011)

September 2002 - January 2011

What Happened

The UK government deposited £250-£500 into accounts for every child born between 2002 and 2011, with additional contributions at age 7. Around 6.3 million accounts were opened. The government invested £2 billion before the Conservative-Liberal Democrat coalition ended new enrollments in 2011 as an austerity measure.

Outcome

Short Term

First accounts matured in September 2020, with average values of £1,911. However, 45% of 18-year-olds had not claimed their funds by April 2021.

Long Term

Over £1.7 billion remains unclaimed in 2023. Parliament found administrative failures—lost contact information, provider changes, lack of awareness—undermined the program's goals. Junior Individual Savings Accounts replaced the program.

Why It's Relevant Today

Trump Accounts face similar risks: ensuring families know accounts exist, maintaining records across 18 years, and preventing unclaimed funds. The UK experience shows universal savings programs can work but require robust outreach and simple access.

Alaska Permanent Fund Dividend (1982-Present)

June 1982 - Present

What Happened

Alaska began distributing annual payments to every resident from oil royalty investments. The first dividend was $1,000 per person. Payments have ranged from $331 (1984) to $2,069 (2009). Children receive equal payments, with parents controlling the funds.

Outcome

Short Term

The program created broad political support for protecting the Permanent Fund's principal, as voters directly benefited from its growth.

Long Term

The dividend became politically untouchable—attempts to reduce payments face fierce opposition. However, Alaska imposes no requirements on how parents use children's dividends, meaning funds often go to household expenses rather than long-term savings.

Why It's Relevant Today

Trump Accounts differ by restricting access until age 18 and requiring investment in index funds, addressing the concern that direct payments get spent immediately. But Alaska shows how universal benefits create durable political constituencies.

Singapore Child Development Account (2001-Present)

April 2001 - Present

What Happened

Singapore launched Child Development Accounts providing government-matched contributions for children's education, healthcare, and development expenses. The government contributes up to SGD 3,000 for the first two children and matches parental contributions dollar-for-dollar up to SGD 6,000-15,000 depending on birth order.

Outcome

Short Term

High enrollment rates as the accounts integrate with Singapore's broader social safety net and can be used for approved childcare and education expenses.

Long Term

The program became part of Singapore's comprehensive lifelong savings infrastructure alongside Central Provident Fund accounts, creating normalized expectations of government-supported asset building from birth.

Why It's Relevant Today

Singapore's success came from integration with other programs and flexible usage rules. Trump Accounts' restriction to age 18 for specific purposes represents a different approach—prioritizing long-term wealth building over immediate needs.

25 Sources:
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U.S. Department of the Treasury CNBC NBC News CNN NPR ABC News Fox Business Wikipedia Brookings Institution Internal Revenue Service UK Parliament House Ways and Means Committee Axios Bloomberg InvestmentNews NewsNation Fortune The Hill Breitbart CNBC CNBC CNBC U.S. Department of the Treasury Fox Business CNBC