$1,000 for every child: What is the ‘Trump Accounts’ plan?

December 4, 2025

In America, children from wealthy families often benefit from their parents and funds, while low-income children grow up without financial support and sometimes have to support their families financially after they become adults.

To reduce this gap, the government has introduced a new program that will provide every child with a financial foundation at the age of 18, so that every child, regardless of their family circumstances, has opportunities to invest and build wealth in the future.

Based on this idea, a new financial plan called “Trump Accounts” has been introduced, which is being said to be part of President Donald Trump’s tax legislation. Under this law, every newborn child whose parents open this account will receive $1,000 from the government. This money will be invested in the stock market by private institutions, and the child will be able to use it for specific purposes when he turns 18.

Under the new program, a bonus of $1,000 will be given only to children born during the Trump administration, that is, during the specified calendar period. Trump accounts are actually a new savings plan designed for children, in which the accumulated money will be invested. Not every child can withdraw this money until the age of 18, and even then, it can only be used for purposes such as education, starting a business, or making a down payment on a house.

If parents open an account in the name of the newborn, the US Treasury will deposit $1,000 in it. Moreover, parents can save up to $2,500 of their annual pre-tax income, while relatives, friends, companies, local governments, and charities can also contribute. The annual limit is $5,000, but contributions from the government and charities are not included in this limit.

This $1,000 seed money will only be available to children who are US citizens, have a Social Security number, and were born between January 1, 2025, and December 31, 2028. The immigration status of the parents has nothing to do with this plan. The child cannot use this money before the age of 18, except in certain circumstances, and taxes will also apply to withdrawals after that. Children born before 2025 are not eligible for this government bonus, but parents can still open an account for them.

Supporters of the plan say that “Trump Accounts” are an attempt to strengthen the capitalist system and give children from low-income homes a chance to build wealth. However, opponents of the plan say that these accounts do not provide any immediate benefits in children’s early years and that wealthy families will benefit the most, while low-income families will benefit the least.