Trump Administration Launches $1,000 'Trump Accounts' for Newborns

The new savings program aims to encourage long-term retirement planning for the next generation.

Jan. 28, 2026 at 11:31am

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The Trump administration has introduced a new federal program that will deposit $1,000 into savings accounts for every child born between 2025 and 2028. Called 'Trump Accounts', the initiative is part of a broader tax and spending package signed into law last year. The accounts are designed to encourage long-term saving and wealth-building, with the funds invested in low-cost index funds and able to be withdrawn for education, home purchases, or retirement.

Why it matters

The Trump Accounts program is a significant new government effort to promote financial literacy and long-term savings among young Americans. While some critics have dismissed it as a 'blatant giveaway', proponents argue it could help a generation of children build wealth for the future. The initiative comes at a time of growing national debt, raising questions about the program's fiscal impact.

The details

The Trump Accounts will provide a one-time $1,000 deposit for any child born between 2025 and 2028 who has a Social Security number. Parents and others can contribute up to $5,000 per year until the child turns 18, with employers able to contribute up to $2,500 of that amount. The funds must be invested in low-cost index funds and can be withdrawn without penalty starting at age 18 for education or home purchases, or held until retirement. After age 59 1/2, the accounts function like traditional IRAs.

  • The Trump Accounts program was created by legislation passed in 2025.
  • The $1,000 deposits will be made for children born between 2025 and 2028.
  • Contributions to the accounts can begin in July 2026.

The players

President Donald Trump

The former U.S. president who championed the creation of the 'Trump Accounts' program.

JPMorganChase

A major U.S. bank that has pledged to match the government's $1,000 contribution for eligible employees.

Bank of America

Another major U.S. bank that has committed to matching the 'Trump Accounts' deposit for its employees.

Broadcom

A technology company that has pledged to match the $1,000 government contribution for all its U.S.-based employees.

Evan Morgan

A principal in the tax advisory group at Kaufman Rossin, an accounting and advisory firm, who spoke about the 'Trump Accounts' in 2025.

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What they’re saying

“By doing this we aren't just matching a contribution, we are investing in the future engineers, entrepreneurs and leaders who will keep America the most innovative nation on earth.”

— Hock E. Tan, CEO, Broadcom (USA TODAY)

“To me, if I drew a best-case scenario on that thousand dollars, it would be sitting in that IRA, compounding, until I retired.”

— J. Spencer Williams, Founder and CEO, Retirement Clearinghouse (USA TODAY)

“This became nothing but a retirement account, at the end of the day. And there's nothing wrong with that.”

— Miklos Ringbauer, CPA, Southern California (USA TODAY)

What’s next

The judge in the case will decide on Tuesday whether or not to allow Walker Reed Quinn out on bail.

The takeaway

While the 'Trump Accounts' program adds complexity to the tax code, it represents a significant new government effort to encourage long-term savings and financial literacy among young Americans. The initiative's success will depend on whether parents choose to actively contribute to the accounts beyond the initial $1,000 deposit.