Treasury Secretary Scott Bessent has confirmed that children who qualify for the newly created “Trump accounts” will have full control over how the funds are used once they turn 18.
Speaking on CBS News’s “Face the Nation,” Bessent described the program as a generational investment mechanism designed to give every child a stake in America’s long-term prosperity.
“These accounts are essentially a trust fund,” he said.
“It is a piece of the American economy for every child.”
How the Accounts Will Work
The accounts were created under the One Big Beautiful Bill Act and are scheduled to become active next year.
Children with Social Security numbers, including newborns, will qualify automatically.
Parents will be able to begin contributing on July 4, 2026.
According to guidance from the IRS, each account will function similarly to a retirement program, with funds invested in the stock market as the child grows.
Individuals may contribute up to $5,000 annually, while employers may add an additional $2,500 to the account of an employee’s child.
Employer contributions will count toward the annual individual cap.
One-Time Federal Deposit and Private Contributions
To jump-start the initiative, the Treasury Department will deposit $1,000 into accounts belonging to children born between January 1, 2025, and December 31, 2028.
This one-time seed amount is intended to ensure early compounding for millions of young Americans.
In addition, philanthropists Michael and Susan Dell have pledged $6.25 billion to help children who miss the federal window.
Their contribution will provide $250 to each of 25 million children aged 10 and under living in ZIP codes where median household income is below $150,000.
A Push to Expand Financial Literacy
Bessent emphasized that the goal is not only to create new investors but also to educate them.
“This is going to bring a whole group of new investors into the market,” he said.
“We’re going to couple it with a big amount of financial literacy, so that children understand what they own.”
Officials say the educational element will be crucial to ensuring responsible long-term management of the accounts.
No Restrictions Once the Child Reaches Adulthood
Bessent reiterated that once a child turns 18, they will not face limitations on how the funds may be used.
They may withdraw the funds outright or convert the account into an IRA-style retirement vehicle.
Supporters of the program argue that unrestricted access will allow young adults to use the money for education, housing, business creation or retirement savings.
No additional rules are expected beyond standard tax guidelines already outlined by the IRS.
A Transformational Savings Policy
The Treasury Department expects the program to boost national savings rates and broaden participation in the equity markets.
By giving every child a financial asset early in life, officials believe the U.S. can reduce long-term inequality and provide families with a more stable financial foundation.
The accounts will be monitored at the federal level but controlled entirely by beneficiaries once they reach adulthood.
