First Lady Melania Trump and Treasury Secretary Scott Bessent have announced a new spinoff of Trump Accounts designed specifically for children in foster care.
The initiative, called Fostering the Future Accounts, extends the existing Trump Accounts program by allowing child welfare agencies to open accounts on behalf of foster children.
Trump Accounts, also known as Section 530A accounts, were created as part of President Donald Trump’s “big beautiful bill” and provide tax-deferred investment funds for children under 18.
Children born between 2025 and 2028 are eligible for a one-time $1,000 deposit from the Treasury, which private firms then invest in the stock market until the child turns 18.
The problem for foster children was that accounts must be opened by an “authorized individual,” typically a parent or legal guardian, leaving children with unstable custody arrangements in a difficult position.
Sixto Cancel, founder of child welfare advocacy group Think of Us, raised the issue directly with the office of First Lady Melania Trump, prompting months of coordination between her office, state governments, and the Treasury Department.
The First Lady said the updated guidance “gives foster children the same chance at asset ownership and long-term wealth as every other child.”
However, a significant gap remains, as child welfare agencies cannot receive the $1,000 pilot contribution on behalf of foster children without a qualifying parent or foster parent making that election.
Advocates worry that unclear guardian rules and custody changes could block many children in foster care from fully benefiting from the program.
More than 400,000 children are currently in foster care across the United States, with one in five at risk of homelessness after aging out of the system, according to the National Foster Youth Institute.
The same organization notes that only half of former foster youth gain employment by the time they reach age 24, underscoring the financial vulnerability the accounts aim to address.
States can deposit federal survivor benefits and unobligated Temporary Assistance for Needy Families funds into these accounts, providing an additional avenue for contributions.
So far, 23 states, all with Republican governors, have opted into the program, with efforts ongoing to bring the remaining states on board.
The accounts are scheduled to open for contributions on July 4, a date the White House has framed as symbolically significant.
The White House Council of Economic Advisers estimates that a Trump Account balance for a baby born in 2026 will reach $5,800 by age 18 and $18,100 by age 28, assuming no additional contributions are made.
Private sector support has also emerged, with Michael and Susan Dell announcing a $6.25 billion donation, and hedge fund founder Ray Dalio and his wife Barbara pledging $75 million for children under 10 in Connecticut.
