Trump Accounts, the US president celebrates 70 million accounts intended for children: what they are

The tycoon's promise

But what are they and how do these accounts work in detail? As "Fox News" points out, parents or guardians of children will have to formally request the activation of the account, opened automatically in their child's name, before they can manage it or start receiving contributions. “If everything goes as it should, and I think it will, they will become quite rich when they turn 18, then 21 and over time,” Trump commented, recounting the details. "This money represents the future of your children. Once upon a time, when you were children, when you turned 18 there was nothing waiting for you."

Philanthropic contributions

According to a White House official, it is estimated that 80% of "Trump Accounts" are linked to families with an annual income of less than $200,000. In fact, it has been confirmed, the automatic opening of these current accounts also expands access to philanthropic contributions, allowing private donors who wish to do so to contribute in a concrete way to increasing children's savings. Trump, in this sense, thanked Michael and Susan Dell for having donated approximately 6.25 billion dollars to the "Trump Accounts", a figure useful for disbursing 250 dollars to 25 million account holders. "We believe in you and want you to dream big, because we know you can make your dreams come true", underlined Susan Dell. "So, parents and grandparents, please request the activation of your children's accounts. These accounts are ready: they are waiting for you and already contain money."

One thousand dollar one-off

Contributions from private donors are in addition to the one-time $1,000 that the federal government provides to some account holders. To be eligible, the beneficiary must have been born between January 1, 2025 and December 31, 2028. In fact, Fox further explains, the "majority of children will not receive the Treasury payment and will instead have to rely on contributions from family members and other individuals authorized to pay funds".

What are "Trump Accounts"

These are tax-advantaged financial brokerage accounts, established last year by Republicans as part of a specific law, known as the "Big Beautiful Bill". From a legal point of view they are comparable to individual pension accounts, but provide specific restrictions, including the prohibition on withdrawals until the beneficiary turns eighteen. The regular contribution limit is set at $5,000 per year for 2026 and 2027, with subsequent adjustments for inflation. Family members and friends can therefore contribute up to $5,000 per year, while employers can contribute up to $2,500 per year. Parents and guardians will be able to activate and manage their children's accounts via the official app, available on the Apple App Store and Google Play. But a web version is also available.