What Are Trump Accounts for Kids?
- Joshua Rigden
- Aug 28
- 3 min read
In early 2025, the “One Big Beautiful Bill” (OBBB) introduced a brand-new program designed to give children a financial head start: Trump Accounts for Kids. While the name comes from President Donald Trump, the legislation was ultimately championed by Senator Ted Cruz (R–Texas) and gained bipartisan attention for its similarities to “baby bond” proposals seen in past years.
The idea is simple—help American children begin life with an investment account that grows alongside them, fueled by both government and family support. Think of it as a blend between a 529 college savings plan and a retirement account but with liquidity at age 30.
Key Features of Trump Accounts
1. Initial Deposit Every eligible child receives a $1,000 “seed” deposit from the federal government.
2. Eligibility Children born between January 1, 2025, and December 31, 2028 qualify for the program.
3. Annual Contributions Parents, relatives, or even employers can contribute up to $5,000 annually (indexed for inflation) into a child’s account.
4. Investment Strategy Funds are invested in a low-cost index fund tracking the overall U.S. stock market—keeping it simple, broad, and growth-oriented.
5. Tax Benefits Earnings grow tax-deferred, giving families a long-term advantage similar to retirement accounts.
6. Withdrawal Rules
Age 18: Access to half the portfolio’s value.
Age 25: Access to the full account balance for qualified purposes (higher education, starting a business, etc.).
Age 30: Complete control of the funds with no restrictions.
Why It Matters
The program is designed to highlight the power of compounding. By starting with $1,000 at birth—and allowing families to add contributions each year—the account can grow substantially over decades. Even relatively modest deposits could give young adults a strong financial foundation for college, entrepreneurship, or other major life steps.
The initiative reflects a growing consensus in Washington: children and young adults face rising costs for education, housing, and business opportunities, and early financial support may help bridge that gap.
The Legislative Context
The program was originally floated by Donald Trump during his campaign and folded into the One Big Beautiful Bill, signed into law in 2025. According to a White House statement, the accounts are meant to help children “experience the miracle of compounded growth and set them on a course for prosperity.”
While politically branded, the policy resembles Democratic-backed “baby bonds,” showing how the idea of children’s savings accounts has gained traction across the aisle.
What Families Should Know
For parents of children born between 2025 and 2028, this program may become a central tool in their long-term planning. Much like 529 plans or Roth IRAs, Trump Accounts introduce another tax-advantaged bucket for families to use.
Whether you choose to contribute the maximum each year or just let the government’s seed money grow, these accounts could play a meaningful role in shaping your child’s financial future.
Next Step: If you have questions about how Trump Accounts fit alongside 529 plans, custodial accounts, or other long-term planning strategies, working with a qualified financial advisor can help you decide how best to integrate them into your family’s financial picture.
About Rigden Capital Strategies
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As a fee-only fiduciary, we offer dynamic, stress-tested wealth plans tailored to your life. Our expertise spans investment management, retirement and tax planning, and estate guidance—blending active and passive strategies to help your portfolio through any market. We believe in real relationships, clear strategies, and long-term results.
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Disclosure: This content is for informational and educational purposes only and should not be interpreted as financial, legal, or tax advice. While we strive for accuracy, we do not guarantee the completeness or reliability of the information provided. Investment decisions should be based on individual circumstances, and we recommend consulting a qualified professional before implementing any financial, legal, or tax strategies. Past performance is not indicative of future results, and all investments carry risks, including potential loss of principal. No investment strategy can guarantee success or protect against loss in all market conditions. Investors should carefully consider their risk tolerance, investment objectives, and financial circumstances before making investment decisions.
