If you’ve heard people talking about the new $1,000 Trump Account for babies and wondered whether your child qualifies, you’re not alone. According to USA Today, the program is tucked inside President Donald Trump’s sweeping tax-and-spending package, and it’s being described as a starter “IRA for kids,” according to tax experts. The whole idea is to give every newborn a solid financial kickstart as they grow up.
Under the program, any baby born between January 1, 2025 and December 31, 2028 qualifies for a one-time $1,000 deposit from the U.S. Treasury. As NBC News reports, the baby must be a U.S. citizen, must have a Social Security number, and the parent simply needs to open the account to receive the deposit. There are no income limits, and a parent’s immigration status doesn’t affect eligibility.
President Donald J. Trump is ensuring every young American family shares in America’s success – empowering the next generation with TRUMP ACCOUNTS. 🇺🇸 pic.twitter.com/G29qXXF6Dj
— American Citizen 🇺🇸 (@realtalkstruth) December 3, 2025
So, what exactly is a Trump Account? The fund is a long-term savings tool where the government’s $1,000 seed deposit, plus any future contributions from parents or others, is invested in low-cost equity index funds. Private financial firms manage the investments, and annual fees are capped at 0.10%. Kids can’t access the money until age 18, except in rare situations. After that, the account works like a traditional IRA with some youth-friendly exceptions, including penalty-free withdrawals for education, a first home, or starting a business.
Parents can contribute up to $2,500 in pretax income each year, and employers can also contribute, making total annual contributions up to $5,000. Governments and charities can add funds too, and those contributions don’t count toward the yearly cap. But one important detail: no one can contribute any money until July 2026. That’s when the Treasury says the Trump Accounts officially open for deposits.
Treasury and the #IRS share guidance on Trump Accounts established under the Working Families Tax Cuts. https://t.co/T1aOsVpbSu pic.twitter.com/nQ4dpeu1d3
— IRSnews (@IRSnews) December 3, 2025
Even though the program is brand new, it already received a major boost. On December 2, USA Today confirmed that Michael Dell and his wife, Susan Dell, pledged over $6 billion to fund an extra $250 for around 25 million existing children aged 10 and under. Their contribution covers households earning $150,000 or less, and is separate from the $1,000 newborn deposit. President Trump called it “one of the most generous acts in the history of our country” during an announcement at the White House.
Financial experts are divided on whether parents should contribute beyond the free $1,000. Some analysts told USA Today it’s “free money” worth claiming for any eligible child. Others noted that parents saving specifically for education may prefer tax-advantaged 529 plans, which offer more flexibility. Still, supporters argue the Trump Account encourages long-term investing and can help low-income families who traditionally start adulthood with nothing. “Anything is better than nothing,” one CPA told USA Today, pointing out how few children grow up with even a small savings cushion.
If you invest your tuppence
Wisely in the bank
Safe and sound
Soon that tuppence safely invested in the bank
Will compound 🎶 pic.twitter.com/wNXy2VzeJR
— Man in the High Castle (@mcelderrytruth) December 3, 2025
Parents won’t be able to open the accounts until July 2026, but they can pre-register by completing IRS Form 4547 once it becomes available. The White House says a dedicated sign-up website will go live in May, with instructions for finishing the setup.
Supporters say the program gives kids a genuine financial foundation. Critics call it another complicated addition to the tax code. But whatever the long-term debate, the basics are simple. If your baby is born from 2025 to 2028, has a Social Security number, and you open the Trump account, they get $1,000. For many families, that alone is worth paying attention to.
