The Trump Administration has launched Trump Accounts, the new savings accounts for children program. Included in the July 4 launch were links to Trump Account apps, a list of financial institutions that will be administering the accounts, and a summary of how parents can set up Trump Accounts for their children. NAIFA supports the Trump Accounts program, and has pledged to help clients and prospects participate in it.

Treasury Secretary Scott Bessent described the Trump Accounts app—available through major app stores—as containing a “full suite of account capabilities.” The nationwide full-scope functionality, Bessent said, allows parents and kids to access their accounts, see their funds in real time, link to bank accounts, set up recurring contributions, get personalized guidance on building the child’s financial future. and contribute to the accounts directly from phone or tablet. The app also offers 15 interactive education models dealing with saving, investing, compound growth, diversification, and capital markets.

More information on the app and on how to sign a child up for a Trump Account is available on TrumpAccounts.gov. Secretary Bessent noted that employers, charities, businesses and governments can contribute to Trump Accounts, but emphasized that to receive funds from these contributions, a child must have a Trump Account.

Trump Account default investments will be invested in a State Street fund (SPDR Portfolio S&P 500 ETF). Treasury has also approved iShares Core S&P 500 ETF (IVV), Vanguard Total Stock Market ETF (VTI), State Street SPDR Portfolio S&P 1500 Composite Stock Market ETF (SPTM), and iShares Core S&P total U.S. Stock Market ETF (ITOT).

Parents of children up to age 18 can open an account and contribute as much as $5,000 per year. Children born from the start of 2025 through the end of 2028 qualify for a one-time $1,000 seed contribution from Treasury. As of June, more than six million families had enrolled their children in the program, according to Treasury, with about 1.4 million of them eligible for the $1,000 government contribution.

Prospects: Trump Accounts are a high priority for the Administration which is encouraging financial advisors to help their clients establish and use the accounts. There are some naysayers, who say only people with extra money will participate in the program, or that other tax-favored investment choices (e.g., 529 plans) will compete with Trump Accounts for parents’ savings dollars. There is already talk of legislation to expand Trump Accounts, although revenue concerns along with some caution to see how the program works out may prevent action on such legislation this year.

NAIFA Staff Contacts: Diane Boyle – Senior Vice President – Government Relations, at dboyle@naifa.org; Mike Hedge – Senior Director – Government Relations, at mhedge@naifa.org; or Jayne Fitzgerald – Director – Government Relations, at jfitzgerald@naifa.org