Treasury Department to Auto-Enroll Millions of Children in Trump Accounts Starting October 1
Quick Look
- Treasury Department announced temporary regulations to auto-enroll millions of children in Trump Accounts starting October 1, potentially increasing enrollment by over 60 million in 2026 and two million annually thereafter.
- Currently, 7-8 million children are enrolled, with Secretary Scott Bessent projecting 70 million within a month due to auto-enrollment.
- The tax-deferred accounts, launched July 4, include a one-time $1,000 Treasury deposit for children born between 2025 and 2028, with additional funds for qualifying families.
AI-generated summary
Why It Matters
Trump Accounts were launched on July 4 as tax-deferred investing accounts for children, featuring a one-time $1,000 deposit from the Treasury Department for kids born between 2025 and 2028. Enrollment has required families to opt in via IRS Form 4547 or TrumpAccounts.gov, resulting in low participation, especially among low-income households. The Social Security Administration had previously indicated plans to integrate enrollment with newborn Social Security number registration at hospitals.
The U.S. Department of the Treasury said Trump Accounts will begin auto-enrolling millions of children as early as Oct. 1, according to temporary regulations published Tuesday.
The change could increase the number of children enrolled in Trump Accounts in 2026 by more than 60 million, the guidance said. In future years, the regulations could boost enrollment by about two million accounts a year.
So far, 7 to 8 million American children have been signed up for Trump Accounts, and "we anticipate within a month we will have 70 million because we will go to auto-enroll," Treasury Secretary Scott Bessent said Sept. 15 at a hearing held by the House Financial Services Committee.
The tax-deferred investing accounts, which launched on July 4, include a one-time $1,000 deposit from the Treasury Department for kids born between 2025 and 2028. Other funds may also be available for qualifying families.
But because signing up for a Trump Account has required families to "opt in" by filing IRS Form 4547 with their tax return or via TrumpAccounts.gov — overall participation rates, especially among low-income families, has been low, other research shows.
The Social Security Administration previously said it would introduce a process to enroll newborns at the hospital at the same time families request a Social Security number during the birth registration process.
This is a developing story. Please check back for updates.
What to Watch
AI outlook — possibilities, not facts
Trump Account enrollment will reach approximately 70 million children within one month of the auto-enrollment policy taking effect.
Likely · Within weeks
Annual Trump Account enrollment will increase by about two million accounts per year following the initial rollout.
Likely · Within years
Open Questions
- What specific criteria determine eligibility for additional funds beyond the initial $1,000 deposit?
- How will the auto-enrollment system be implemented across states and healthcare providers?
- What safeguards are in place to prevent misuse or fraud in the automated enrollment process?
- How will the Treasury Department measure and report on the long-term financial outcomes of account holders?
