Overview

• The Trump Accounts pilot will automatically seed every U.S. citizen born between 2025 and 2028 with a $1,000 tax-deferred investment in a low-cost stock index fund.
• Draft regulatory guidance under development by the Treasury and IRS will establish eligibility verification, enrollment procedures and private contribution mechanisms ahead of the rollout.
• Economists warn that financing the program’s $3 billion annual cost through federal borrowing could displace private investment and tie beneficiaries to market volatility.
• Parents and employers can make additional annual contributions of up to $5,000 and $2,500 respectively before the child’s 18th birthday, with withdrawals unlocked for qualified expenses at age 18.
• Program success hinges on broad participation, effective rulemaking and whether the leverage-based funding model genuinely increases national savings rather than merely redistributing existing capital.