Donald Trump has launched a new savings program that could give $1,000 to every baby born during his current term – but families won’t see a cent unless they take specific steps.
The money comes through special savings plans called “Trump Accounts,” created earlier this year as part of a larger tax package and promoted as a way to help children build long-term wealth.
Below is how the plan works, who qualifies, and what parents need to do.
What is a Trump Account?
A Trump Account is a government-backed investment account set up in a child’s name.
When parents open an account for a baby born between January 1, 2025, and December 31, 2028, the U.S. Treasury deposits $1,000 as a starting amount.
That money is invested in U.S. stock-market index funds, managed by private firms whose annual fees are capped at 0.10%.
The idea is that, over time, compound growth in the stock market will turn this seed money into a much larger nest egg.
How much can go into the account?
Parents and others can add more money each year:
Parents are allowed to contribute up to $2,500 a year in pre-tax income.
Altogether — including money from employers, grandparents, and other private sources — a child’s account can receive up to $5,000 per year.
Extra contributions from government programs or charities don’t count toward that $5,000 cap.
The funds are locked in until the child turns 18. Even then, the money can only be used for specific goals, such as:
Paying for education
Starting a business
Making a down payment on a home
According to the White House, if a Trump Account is fully funded every year and left untouched, the balance “could grow to as much as $1.9 million by age 28.”
Who gets the $1,000 government contribution?
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/p1lkg7n9X9
— The White House (@WhiteHouse) December 2, 2025
To qualify for the full $1,000 deposit, a child must:
Be a U.S. citizen
Have a Social Security number
Be born between January 1, 2025, and December 31, 2028
Any parent or legal guardian — no matter their own immigration status — can open a Trump Account for a qualifying baby.
The key detail:
The account has to be opened for the $1,000 to be paid.
If no account is created, the government does not automatically send money.
What about older children?
Kids born before 2025 don’t receive the $1,000 federal kickoff deposit, but parents can still open Trump Accounts for them as long as the child is under 18. The same contribution limits apply, including the option to add up to $2,500 a year in pre-tax income.
Some older children may also get an extra push: in certain ZIP codes with a median income of $150,000 or less, kids aged 10 or younger can qualify for an additional $250 contribution from the Dell Foundation.
Bottom line for parents
If you want your newborn to receive Trump’s promised $1,000:
Make sure your baby has a Social Security number.
Confirm they’re born within the 2025–2028 window.
Open a Trump Account in their name — the Treasury’s $1,000 will only be deposited into an active account.
From there, parents and relatives can decide how much more to invest each year, knowing that the money is locked away for big life milestones once the child becomes an adult.
