Treasury Launches 'Trump Accounts' $1,000 Baby Savings Program

The Treasury Department and White House are holding a Jan. 28 summit to launch 'Trump Accounts,' a new federally backed savings program created in President Trump’s tax law that gives $1,000 to every eligible U.S. newborn if parents open an account. The money is invested in low‑fee U.S. equity index funds managed by private banks and brokerages, with the child barred from accessing funds until age 18 and then only for specified uses such as tuition, a business start‑up or a home down payment. Parents can contribute up to $2,500 in pretax income annually, with total yearly contributions capped at $5,000 not counting government and philanthropic deposits, and any parent can open an account regardless of immigration status. The $1,000 federal seed is limited to U.S.-citizen babies born between Jan. 1, 2025, and Dec. 31, 2028, meaning older children can get the tax‑advantaged account but not the bonus; a separate $6.25 billion private donation from Michael and Susan Dell will add $250 for some children 10 and under in lower‑income ZIP codes. The rollout event features Trump, Treasury Secretary Scott Bessent, Sen. Ted Cruz and rapper Nicki Minaj, underscoring the administration’s effort to brand the accounts as a flagship affordability and wealth‑building tool even as experts and critics debate who will benefit most and how much long‑term equity exposure helps poorer families.