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Trump Accounts explained: how to claim your child’s money

The US has auto-enrolled nearly 70 million children in Trump Accounts, new tax-advantaged investment accounts. Here is how they work.

What are they? Investment accounts for Americans under 18 who hold a social security number. The money is invested in an S and P 500 index fund and becomes available at 18.

How much is in them? Children born between January 1, 2025 and December 31, 2028 get a 1,000-dollar seed contribution. Separately, the Dells have pledged 6.25 billion dollars to add 250 dollars for about 25 million children in lower-income zip codes.

Do parents need to act? Yes. Although accounts were created automatically, parents must claim them through an app to manage the money and add contributions.

Why the debate? Supporters call it the largest child-wealth programme in US history. Critics say a one-time seed does little for the poorest families and question the use of public branding. Either way, eligible families should claim their accounts.

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Khabar 24h Editorial Desk

Khabar 24h Editorial Desk — our explainers are prepared by the Khabar 24h editorial team using AI-assisted research tools, and every piece is reviewed by a human editor before publishing. We do not claim original reporting: our work is turning complex topics into simple, accurate summaries. Spotted an error? Write to contact@khabar24h.com — our corrections policy aims for same-day review.

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