Trump Account For Newborns: Eligibility, Payout Details, And How The Program Works

President Trump unveiled a new initiative in the GOP tax bill that would create “Trump Accounts” for every US citizen born between January 1, 2025, and December 31, 2028. Under the plan, the federal government will make a one-time $1,000 contribution into a tax-deferred account that tracks the overall stock market.

These accounts will be private property controlled by the child’s guardians, allowing parents to add up to $5,000 annually. Children will be able to access some funds at age 18 for education, training, or a first-time home purchase, with full access at age 30. Trump says this program will give countless American children a strong financial start in life.

Unlike tax-free withdrawals from 529 education plans and Roth IRAs, the Trump savings accounts will require post-tax contributions, and withdrawals will be taxed either as long-term capital gains or regular federal income, depending on how the funds are used.

Before the bill passed last month, House Republicans renamed the program from “MAGA Accounts” to “Trump Accounts,” giving the president a signature initiative aimed at providing a tangible financial benefit to working-class Americans, and one he can directly associate with his name.

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"The passage of the One Big Beautiful Bill will literally change the lives of working, middle class families across America by delivering the largest tax cuts in history, increasing the child tax credit, AND by creating this incredible new 'Trump Account' program, which will put the lives of young Americans on the right financial path!" White House press secretary Karoline Leavitt said in a statement.