Trump $1,000 account for children: How it works, who is eligible and all the details

President Donald Trump’s “One Big Beautiful Bill” will establish a savings account for millions of babies born in the U.S. The so-called “Trump accounts” will “afford a generation of children the chance to experience the miracle of compounded growth and set them on a course for prosperity from the very beginning,” the White House said in a statement.

Here’s how the Trump accounts will work, who is eligible and how much beneficiaries will receive:

What’s a “Trump account?”

Trump accounts will start with a $1,000 contribution from the U.S. government. The money is designed to grow over time with investment in low-cost stocks based on market indexes.

Who is eligible?

Children born from the beginning of 2025 through the end of 2028 are eligible, according to the bill. Kids born before this year are eligible for an IRA-style account but won’t receive the $1,000 seed money, Yahoo Finance reported. Recipients must also be a U.S. citizen with a Social Security number.

Can parents make contributions too?

Yes. Parents or others can make contributions up to $5,000 a year to the Trump account until the child turns 18. Companies can also contribute up to $2,500 a year into the account of an employee’s eligible child without adding to the worker’s taxable income.

Are there income limits to be eligible?

There are no income limits for families to receive the $1,000.

When will the money be available?

The money is expected to be available in July 2026.

When can the child access the money?

Children will be able to access the money when they turn 18. After age 18, the yearly contribution limit is expected to increase to $7,000 in keeping with traditional IRA rules. There is a 10% penalty for withdrawing money from an IRA before age 59-and-a-half but there are exceptions for home purchases or higher education expenses.

How much could accounts be worth?

An analysis by NPR showed a $1,000 investment with an 8% return rate would be worth $4,000 by the time the child turned 18. Families who contributed the additional $5,000 at the same 8% rate could see $190,000 at age 18.

Who will set up the accounts?

Key details are still being determined but the bill allows for parents to set up the accounts at the bank of their choice. The Treasury Department will set up accounts for children whose parents don’t elect to do so.

How much will this cost the U.S.?

About 3.6 million babies are born in the U.S. each year, the New York Times reported, putting the tab for the Trump accounts at several billion for year.