Trump Signs Act Establishing $1,000 Investment Accounts for Children

Donald Trump signed the One Big Beautiful Bill Act into law, establishing Trump Accounts for U.S.-citizen children born between 2025 and 2028. The program provides a one-time $1,000 government deposit into tax-deferred accounts, which must be invested in diversified, low-cost index funds tracking the stock market. These taxpayer-funded deposits are part of a pilot program scheduled to end after the 2028 presidential election.

Funds become accessible when the account holder reaches age 18, with no restrictions on usage, though holders may convert the accounts into retirement programs. Parents and guardians can begin making annual contributions of up to $5,000 starting July 4, 2026. Treasury Secretary Scott Bessent stated the initiative aims to introduce new investors to the market and will be paired with financial literacy efforts.

To expand the program's reach, Michael and Susan Dell pledged $6.25 billion to provide $250 deposits to 25 million children born before the program cutoff, specifically those age 10 and under in ZIP codes with median family incomes below $150,000. While the administration suggests the program helps address declining birth rates by creating a nest egg for housing or education, critics argue it ignores immediate costs like child care and health care.

Separately, President Trump proposed a $2,000 tariff-derived dividend payment for low- and middle-income individuals in 2026, although Treasury officials noted this specific measure requires Congressional approval.