As families start sorting receipts and logging into tax software, the Trump administration is using this filing season to spotlight a new savings program that Trump claims is aimed at children born later this decade.
The accounts were authorized under Trump’s latest tax and spending law. Beginning this July, the federal government says it will place $1,000 into an investment account for every child born between 2025 and 2028. That deposit serves as a starting balance that families and employers can build on over time.
Several large companies have already agreed to match the federal contribution for eligible workers’ children. Those firms include Charles Schwab, Robinhood, SoFi, Uber, Charter Communications, and BNY. Treasury officials say more corporate commitments are expected to be announced as the rollout continues.
The push also includes high-profile backers from business, politics, and entertainment, including Nicki Minaj, Kevin O’Leary, Dell CEO Michael Dell, actress Cheryl Hines, and SoFi CEO Anthony Noto.
Beyond newborns, some older children may benefit from separate private efforts. Michael and Susan Dell recently pledged $6.25 billion to seed accounts for millions of children aged 10 and under in qualifying communities.
To receive government funds, families must make an election on IRS Form 4547. Parents can add up to $5,000 per year, while employers may contribute $2,500 annually. The money is locked into a broad stock market fund until the child turns 18. Administration projections suggest a single $1,000 deposit could grow to about $5,800 over 18 years, while consistent maximum contributions could exceed $300,000 by adulthood.
Still, the program comes with real trade-offs families may want to weigh carefully. Because the money must be invested in a stock market tracking fund, account balances are exposed to market downturns with no guarantee of returns. The funds are also locked until the child turns 18, limiting flexibility if families face financial emergencies earlier. In addition, long-term projections are based on historical averages, not future certainty, and changes to tax law or program rules by future administrations could affect how the accounts function over time. For parents already navigating rising costs and economic uncertainty, the promise of growth comes with risks that are not always front and center in the pitch.
