Trump Says 7 Million Kids Have Accounts, but Some Families Await $1,000/ Newslooks/ WASHINGTON/ J. Mansour/ President Donald Trump says more than 7 million tax-advantaged Trump Accounts are active for children across the United States. Eligible babies born from 2025 through 2028 receive $1,000 from the Treasury, although some parents report waiting weeks for the deposit. The administration promotes the program as a path to long-term wealth, while critics question its immediate value for families facing poverty and rising costs.
Quick Look
- Trump Accounts became available July 4.
- Trump said more than 7 million accounts are active.
- Accounts can be opened for any child younger than 18.
- The federal $1,000 deposit is limited to babies born from Jan. 1, 2025, through Dec. 31, 2028.
- Treasury says most eligible families receive the money within one or two days.
- Some parents have been told processing could take up to four weeks.
- Parents, relatives, friends and employers can make additional contributions.
- Private financial firms invest the money in stock-market index funds.
- Children generally cannot access the money before age 18.
- Withdrawals are restricted to approved purposes such as education, a home or a business.
- Georgia Republican gubernatorial nominee Rick Jackson proposed a state match.
- Child welfare agencies can open accounts for foster children.
- Critics say the program offers little immediate assistance during early childhood.
Deep Look
Trump Promotes $1,000 Accounts at Georgia Rally
WASHINGTON — President Donald Trump promoted the new government-backed investment accounts for children during a Wednesday rally at a Georgia high school.
Eligible babies receive $1,000 in federal seed funding after an account is opened in their name. Trump said the money would give children “a really fair shot at the American dream.”
“Think of that. The government is finally giving money back to our children,” Trump told the crowd.
Trump said more than 7 million accounts were already active. The accounts officially became available July 4.
Which Children Qualify for the $1,000?
A Trump Account can be opened for any child younger than 18, but not every account qualifies for the federal deposit.
The Treasury provides $1,000 only for children born between Jan. 1, 2025, and Dec. 31, 2028.
After an account is established, parents, relatives, friends and employers can contribute additional money. Some billionaires have also promised philanthropic deposits.
The accounts have tax advantages intended to support long-term investment growth.
Money Is Invested in Index Funds
Money contributed to Trump Accounts is managed by private financial companies and invested in index funds.
An index fund is a mutual fund designed to follow the performance of a market benchmark rather than relying on a manager to select individual stocks.
The funds generally cannot be accessed until the child turns 18. Even then, withdrawals are restricted to approved uses, including:
- Paying for education
- Starting a business
- Purchasing a home
Supporters say the program will give more children a financial stake in the stock market and help them accumulate assets before adulthood.
Georgia Candidate Proposes State Match
Rick Jackson, Georgia’s Republican nominee for governor, appeared with Trump at the rally and said he would ask state lawmakers to match the federal government’s $1,000 contribution.
Jackson, a wealthy businessman and health care company CEO, predicted that Georgia lawmakers would support the proposal.
“If they don’t, I will personally donate it myself,” Jackson said.
Some Parents Report Deposit Delays
Although Treasury says most families receive their money quickly, some parents who opened accounts earlier in July were still waiting for the federal deposit.
Masaki and Kristina McLellan of Bergen County, New Jersey, opened an account for their daughter, Maya, who was born in late March.
The couple initially hesitated because they worried the program might be a promotional effort for Trump. The $1,000 incentive ultimately persuaded them to apply.
Masaki McLellan submitted the application July 6. It was initially rejected, but the account became active after he contacted the program’s hotline.
He was first told the money would appear within 10 days. He later learned that the process could take as long as four weeks.
Family Already Has Other Investments for Daughter
Kristina McLellan said she was disappointed by the delay, although her daughter already has other investment accounts.
The couple established a 529 college savings plan and a custodial brokerage account for Maya. The Trump Account is her third investment vehicle.
“We definitely want to give her options for her future and make sure she can choose what she wants to do,” McLellan said.
The Treasury Department described the family’s situation as unusual and said only a small portion of applicants require customer service.
Treasury Says Most Deposits Arrive Quickly
Treasury said most eligible families receive their $1,000 deposits within one or two days.
The department characterized the waiting period as “standard processing time, like receiving a tax refund.”
Officials said families may receive conservative estimates of up to four weeks even though the transfers are usually completed much sooner.
“Trump Accounts level the playing field by allowing every parent to invest in their children’s future, not just wealthy families with trust funds,” the department said.
Accounts Expanded to Foster Youth
The federal government announced an initiative in June allowing child welfare agencies to establish Trump Accounts for foster children.
Treasury described the overall program as attracting significant demand even before its formal launch.
“With roughly 1 million sign-ups per month before launch, Trump Accounts have become the most popular and successful government-backed savings product in U.S. history,” the department said.
Trump called the program “the most consequential” component of his tax and spending legislation, known as the One Big Beautiful Bill.
Supporters View Program as Wealth-Building Tool
Program supporters say Trump Accounts can help children benefit from decades of potential stock-market growth.
They also see the accounts as a market-based response to the growing popularity of democratic socialist policies, which generally call for higher taxes on corporations and wealthy individuals to reduce living costs for lower- and middle-income families.
Trump Accounts are similar to baby bond programs adopted by some Democratic-led states and cities.
Many baby bond initiatives focus on children from lower-income families. Trump Accounts, by contrast, are available to families at every income level.
Critics Question Help During Early Childhood
Critics argue that the investment accounts do not address the immediate financial pressures parents face during a child’s earliest years.
Children are particularly vulnerable to poverty, homelessness and hunger during that period, while Trump Account funds remain inaccessible until adulthood.
Critics also note that the Republican legislation creating the accounts reduced funding for programs used heavily by children and lower-income families, including Medicaid and the Supplemental Nutrition Assistance Program.
Program Arrives During Economic Pressure
Trump promoted the accounts as he and other Republicans faced voter dissatisfaction over the economy before the midterm elections.
Only 33% of U.S. adults approved of Trump’s handling of the economy in a June AP-NORC survey.
Trump campaigned on reducing costs, but his tariffs and the Iran war have contributed to higher prices, creating political pressure for Republicans as they promote the accounts as a long-term economic benefit.
You must Register or Login to post a comment.