60 Million Kids to Get Trump Accounts Automatically — But There's a Catch

The Treasury Department will automatically create Trump Accounts for more than 60 million children who don't already have one, beginning on or about Oct. 1, under new rules released Tuesday. The move eliminates the requirement for parents or guardians to sign up for the program — but the $1,000 government deposit still requires a separate request.

WASHINGTON – The Treasury Department announced new rules on Tuesday that will automatically enroll millions of children in Trump Accounts, the tax-advantaged savings and investment program created under President Donald Trump's Working Families Tax Cuts Act.

The automatic enrollment will create accounts for more than 60 million additional children under the age of 18, according to department guidance. The rules, issued jointly with the Internal Revenue Service, are set for publication Wednesday in the Federal Register.

Treasury Secretary Scott Bessent told a House Financial Services Committee hearing earlier this month that the agency anticipated the number of accounts could reach 70 million because of auto-enrollment.

What the New Rules Actually Do

Automatic accounts go only to children for whom no one has already filed to open an account. The Treasury said it will keep enrolling eligible children periodically, adding about 2 million accounts a year as newborns arrive.

The program's official website declares, "The American Dream starts now" and promotes "long-term financial security for millions of kids".

But the automatic step does not trigger the $1,000 government deposit for children born from 2025 through 2028. The rules say the Treasury secretary cannot make that election — parents must still request it.

Once claimed, accounts can receive up to **$5,000 a year**, including up to $2,500 from employers. The money is invested in low-cost index funds of mostly U.S. stocks and generally cannot be withdrawn before the year the child turns 18.

The Claiming Problem

The Wall Street Journal reported that the rules do not fully spell out how parents will claim the accounts. To add family money or employer contributions, a parent or guardian must claim the account through a Treasury app or website, verifying identity and legal authority over the child's finances.

The gap between automatic enrollment and actual access has raised concerns. About 5.6 million electronic sign-up forms had been processed by July 30, compared with an estimated 73.4 million eligible children. Only about 10,000 came from households reporting no income, which include 8.6 million eligible children.

Hedge fund manager Bill Ackman criticized parents who skip the program over its name, calling it "stupid" — but acknowledged legitimate barriers, including mistrust among immigrant communities after the IRS shared 47,000 taxpayer addresses with the Department of Homeland Security last year.

The Broader Program

Trump Accounts are tax-advantaged savings accounts available to every U.S. citizen under 18 with a valid Social Security number. Children born between January 1, 2025, and December 31, 2028, are eligible for the one-time $1,000 government seed contribution.

The funds are invested in broad U.S. equity index funds and generally cannot be withdrawn before age 18. Once the child reaches adulthood, the account functions like a traditional IRA.

The program has attracted significant private support. **Michael and Susan Dell committed $6.25 billion** to support children born from 2016 through 2024 in ZIP codes with median household income below $150,000. More than 50 companies have also committed to contributing to employees' children's accounts.

The Bottom Line

The automatic enrollment represents a dramatic expansion of one of Trump's signature domestic policy initiatives. But the gap between "account created" and "account accessible" means millions of families may find themselves with accounts they cannot yet use — unless they navigate the claiming process themselves.

The accounts will exist. Whether the money reaches them is another question.