Nearly 70 million kids now have a Trump Account—but parents have to claim it first. Here's who gets the $1,000

According to the Trump administration, almost every child in the United States now possesses a Trump Account. However, the future value of these accounts remains uncertain.

On October 1, the Treasury Department announced the completion of the automatic enrollment of eligible children into tax-advantaged investment accounts, resulting in the establishment of accounts for over 60 million children who previously lacked one. This initiative, combined with the number of families that proactively registered, leads to a total of nearly 70 million accounts, as reported by the White House.

"Today, I'm pleased to announce that every single eligible minor child in America has now been automatically enrolled in a Trump Account," President Donald Trump stated during an event in the Oval Office on October 7.

It is important to note that merely having an account does not equate to instant accessibility. Parents or guardians must claim the account through the official Trump Accounts app before they can manage it, accept contributions from relatives and friends, or receive the government’s $1,000 seed deposit for eligible children.

The shift to automatic enrollment is a response to the previously slow uptake of the program. Before this change, the Treasury had processed approximately 5.6 million sign-up applications, which is less than 10% of the estimated 73.4 million children deemed eligible. It was previously reported that some families who enrolled early are still awaiting their promised $1,000 funding.

Where the money is coming from

Since the program's inception on July 4, over $4.5 billion has been deposited into Trump Accounts, comprising $1.3 billion in government seed contributions, over $600 million from family and friends, and $2.6 billion in philanthropic donations, according to the White House. Divided among nearly 70 million accounts, this averages to around $64 per child.

A significant portion of the philanthropic funding stems from the $6.25 billion pledge made by Michael and Susan Dell, which provides $250 to up to 25 million children aged 10 and under who reside in ZIP codes with median household incomes below $150,000. Additionally, more than 70 companies have committed to contributing to their employees' children's accounts, as reported by the White House, following initial pledges from firms such as JPMorgan Chase and Bank of America.

The administration has presented these accounts as a strategic avenue for wealth accumulation. The calculator available on TrumpAccounts.gov suggests that an initial $1,000 seed could potentially grow to $243,000 by age 55, and that an account receiving the maximum annual contribution of $5,000 could yield $13 million. These projections assume an uninterrupted annual return of over 10% from the S&P 500 for 55 years. However, financial planners consulted by Fortune anticipate more conservative outcomes, estimating a range of approximately $1.5 million to $2 million by the time a child reaches age 55, under the assumption of a 7% return.

Stock gifts, with strings attached

The majority of funds within Trump Accounts are allocated to low-cost index funds. However, the Treasury announced in July its willingness to accept significant philanthropic donations in the form of publicly traded stock, accompanied by the IRS releasing guidelines on September 30 that outline the procedures for such transactions. Qualifying stock will be transferred to the Treasury and distributed to eligible children based on donor wishes and Treasury regulations.

“By accepting contributions of publicly traded stock, Treasury is creating a practical pathway for large-scale private giving to support the next generation,” stated Treasury Secretary Scott Bessent in a statement during July.

The rules governing these contributions are specific. Stock donations may only be made by companies or charities established by stockholders, exclusionary of relatives, and must be diversified across at least 5,000 accounts in an eligible geographic area. The donated shares must be retained for a minimum of five years prior to any sale. Among the early adopters of this option is SpaceX president Gwynne Shotwell, who has pledged one share each to over 2 million children's accounts.

While single-stock gifts can afford children a stake in the growth of specific corporations, there is an inherent risk due to concentration.

“A child could, hypothetically, receive $10,000 of Company X stock, resulting in at least 67% of the minor’s portfolio being concentrated in Company X,” remarked U.S. Bank wealth management advisor Jonathan Lee in an interview with Yahoo Finance.

Who benefits most

Critics contend that the program's primary beneficiaries will be families who have the financial capacity to contribute. "The program may be open to every child, but its benefits will flow overwhelmingly to families with the means to contribute thousands of dollars a year," asserted Stanford economists Neale Mahoney and Adam Shaw in an article for Time last December. An analysis conducted by researchers at The New School reached a similar conclusion, utilizing 15 years of 529 college savings data for reference.

In contrast, the White House argues that approximately 80% of Trump Accounts are associated with families earning less than $200,000 annually.

Who is eligible and how to claim an account

All children under the age of 18 with a valid Social Security number now have an account. However, the government's one-time $1,000 seed contribution is limited to U.S. citizen children born between January 1, 2025, and December 31, 2028. Importantly, the account must be claimed for the child to receive this funding.

Parents and guardians can claim the accounts via the Trump Accounts app available for both iOS and Android; additional information can be found at TrumpAccounts.gov. Once an account has been claimed, family and friends are permitted to contribute a combined total of up to $5,000 annually, while employers may add up to $2,500 each year. Notably, the government-provided $1,000 seed and certain contributions from local and state governments, as well as nonprofit organizations, do not count toward the $5,000 cap.

Upon reaching age 18, the account transitions into a traditional IRA. Withdrawals will be taxed as ordinary income, and early withdrawals may incur penalties unless utilized for qualifying expenses such as education or purchasing a first home; therefore, families should carefully review tax regulations before determining how to utilize the funds.