The first of them arrived before their parents left the hospital. From 4 July 2026, every child born in the United States is automatically enrolled in a Trump Account, a government-seeded investment account that opens with a $1,000 federal deposit. Existing children under the age of eight qualify too, and their families have until the end of the year to claim.
The scheme is the centrepiece of the "Big Beautiful Bill" that cleared Congress last month. The accounts sit in tax-advantaged investment vehicles, similar in structure to a Roth IRA. Families can contribute up to $5,000 a year on top of the seed money, and the funds grow tax-free until the child reaches adulthood. Withdrawals can cover education costs, a first home, or small business formation.
Wall Street had a hand in the design. Major asset managers lobbied for the accounts to be invested in diversified index funds by default, which is the most investor-friendly outcome, and that lobbying appears to have succeeded. The administration framed automatic enrolment deliberately: behavioural research shows that opt-in schemes leave money on the table, especially for lower-income families who never get around to signing up. Making enrolment the default flips that dynamic.
The honest caveat is sequence-of-returns risk. A child born today into a rising market will compound well. A child born at a market peak who withdraws at a market trough may see the headline gains evaporate. The $1,000 seed is meaningful but not transformative on its own. Much depends on whether families contribute regularly over the following 18 years, which the poorest households are least likely to do.
The scheme is also not means-tested. Every child, regardless of family income, receives the same $1,000. Critics argue the money would do more concentrated at the bottom. Proponents counter that universality is what gives the programme political durability.
For now, the accounts are open. The compound clock has started.
