Camilla Jessen
How newborns can qualify for Trump’s $1,000 payout.
A new federal savings scheme promises a $1,000 jump-start for babies born during Donald Trump’s current term, but families must take specific steps to secure the money.
The White House says the initiative could set some children on a path to major long-term wealth provided their parents sign up in time.
What the plan offers
Under the law, “Trump Accounts” give eligible newborns a government-funded $1,000 deposit once parents open an account.
According to AP, the funds will be invested in low-fee stock market index portfolios overseen by private managers.
Babies must be born between Jan. 1, 2025, and Dec. 31, 2028, to qualify for the federal contribution. Parents can add up to $2,500 a year in pretax income, with total private contributions capped at $5,000 annually.
The White House says that “if fully funded and left untouched,” the balance “could grow to as much as $1.9 million by age 28.”
Eligibility rules
The child must be a U.S. citizen with a Social Security number, and an account must be opened to trigger the federal deposit.
Without an account, no money is paid.
Older children born before 2025 cannot receive the $1,000 starter payment, but parents can still open accounts for anyone under 18.
People magazine reported that some children aged 10 or younger in select ZIP codes may qualify for a separate $250 contribution from the Michael and Susan Dell Foundation.
Trump described the philanthropists’ “landmark gift” as “truly one of the most generous acts in the history of our country.”
How to enroll
Accounts will begin accepting deposits in July 2026.
Families will need IRS Form 4547, which had not been released as of Dec. 4.
Officials say additional guidance will be posted on the program’s website on Dec. 17.
Funds can only be used after age 18 and for restricted purposes such as education, starting a business, or buying a home, AP reports.
Criticism and concerns
Trump has framed the initiative as “a pro-family initiative that will help millions of Americans harness the strength of our economy.”
Critics counter that the scheme ignores urgent childhood needs, noting that the same tax legislation cut programs like Medicaid and food assistance.
Policy analysts told CNN the structure primarily benefits wealthier households able to make substantial yearly contributions, leaving lower-income families with far smaller returns over time.
Sources: AP, CNN, People
