Trump Unveils $1,000 Baby Accounts With Corporate Backing

On a brisk January morning in Washington, D.C., President Donald Trump and Treasury Secretary Scott Bessent convened a summit with some of the biggest names in business and entertainment. The occasion? The official unveiling of the “Trump accounts,” an ambitious federal initiative promising every American child born between January 1, 2025, and December 31, 2028, a $1,000 stake in the stock market—courtesy of the U.S. Treasury. The program, a centerpiece of the administration’s One Big Beautiful Bill Act, aims to jumpstart lifelong savings and, its backers hope, narrow the persistent U.S. wealth gap.

The event, which kicked off at 9:45 a.m. EST on January 28, 2026, drew an eclectic crowd. According to Nexstar Media, attendees included White House press secretary Karoline Leavitt, rapper Nicki Minaj, Senator Ted Cruz of Texas, Representative Jason Smith of Missouri, and Cheryl Hines, wife of Health and Human Services Secretary Robert F. Kennedy Jr. The summit marked not just a policy rollout but a moment of high-profile endorsement, with both Wall Street and pop culture icons lending their support.

At the heart of the program is a simple promise: every eligible child receives a government-backed investment account seeded with $1,000. The funds, as explained by the IRS and reported by multiple outlets including Reuters and Fox Business, will be invested in broad U.S. stock index funds—mirroring the low-cost, diversified approach typical of many individual retirement accounts (IRAs). The accounts are designed to grow tax-deferred, with income taxes due only upon withdrawal, much like traditional retirement vehicles.

“For the first time ever, we’re going to give every newborn American child a financial stake in the future,” President Trump declared from the stage at the Andrew W. Mellon Auditorium, according to Fox TV. “Over the next 15 years, we’re going to put 3 to $4 trillion of wealth into the hands of young Americans who otherwise would have really started out with nothing.”

But the federal government isn’t going it alone. In a coordinated announcement, JPMorgan Chase and Bank of America revealed they would match the government’s $1,000 contribution for eligible employees’ children, as reported by CNBC and Reuters. “By matching this contribution, we’re making it easier for them to start saving early, invest wisely, and plan for their family’s financial future,” stated JPMorgan CEO Jamie Dimon. Bank of America, for its part, said, “Our announcement to support and complement this new federal program for our teammates is one of the many ways we continue investing in our teammates and reinforce our commitment to being a Great Place to Work.”

The list of supporters goes well beyond banks. BlackRock, BNY, Robinhood, SoFi, and Charles Schwab have all pledged to match contributions for their eligible employees. Even billionaire philanthropists Michael and Susan Dell and hedge fund titan Ray Dalio have thrown their weight—and their wallets—behind the effort. Notably, the Dell family committed $6.25 billion to provide an extra $250 in seed money for up to 25 million American children under age 10 who live in ZIP codes with median family incomes of $150,000 or less, as reported by Fox TV. This additional funding is reserved for those who may not qualify for the Treasury’s $1,000 contribution, aiming to ensure that lower-income children aren’t left behind.

So how does it all work? According to the Social Security Administration and Fox Business, any adult authorized on behalf of a qualifying child—parent, guardian, adult sibling, or grandparent—can establish a Trump account if the child has a valid Social Security number. While the $1,000 government deposit is automatic for eligible newborns, families (and, in some cases, employers, churches, or even states) can contribute up to $5,000 per year. For children born before 2025 but still under 18, parents can open accounts and contribute up to $2,500 pretax, though these children won’t receive the initial $1,000 from the Treasury.

Enrollment is straightforward, if not yet fully live. Parents will be able to opt in when filing their tax returns or by completing IRS Form 4547, with a dedicated Trump Accounts website set to launch in July 2026. The accounts are strictly invested in index funds tracking the overall stock market, and the funds become accessible when the child turns 18—for education, buying a home, or starting a business.

The projected growth of these accounts has drawn both excitement and skepticism. According to the Treasury Department’s Office of Tax Analysis, if left untouched, the $1,000 deposit could grow to between $3,000 and $13,800 over 18 years, depending on market performance. With consistent contributions, the numbers climb dramatically: President Trump suggested that “with every modest contribution, Trump account should reach at least $50,000 in value by the time the child turns 18. It could be very substantially more than that. With slightly greater contributions, the typical account will grow to 100,000, 200,000. It can even grow up to $300,000 per child.” Treasury’s own modeling suggests a fully funded account, with maximum allowable contributions, could be worth as much as $1.9 million by age 28.

Supporters see the program as a bold step to democratize investment and give every child, regardless of background, a head start in wealth-building. “Backers of the accounts say they want to introduce more people to the stock market and give even children born into poverty a chance to benefit from it,” Fox TV reported. They argue that early exposure to investing could help counter the rising popularity of socialism and foster a culture of ownership and opportunity.

Yet the initiative has its critics. Some policy analysts and advocates for low-income families argue that the accounts do little to address the needs of children in their earliest, most vulnerable years—when poverty’s effects are most acute. They also point out that the greatest benefits will accrue to families who can afford to make the maximum contributions, potentially widening the wealth gap rather than narrowing it. “Poor families who can’t afford to set aside money for the accounts will benefit the least,” critics told Fox TV. Even with a 7% annual return, the initial $1,000 would grow to just $3,570 over 18 years without additional contributions.

Others note that the Trump accounts, while generous in design, do not offset recent cuts to safety net programs such as food assistance and Medicaid. And, unlike state-level “baby bonds” programs in places like California and Connecticut—which target aid to children in poverty or foster care—the Trump accounts are universal, meaning affluent families can benefit just as much, if not more, than those in need.

Despite the debate, enthusiasm among employers and philanthropists appears strong. Bank of America, for instance, will allow its 165,000 eligible U.S. employees to make pretax contributions through payroll deductions, further amplifying the accounts’ potential. As the program’s official launch date of July 4, 2026, approaches, families across the country are watching closely—wondering whether this bold experiment in wealth-building can deliver on its lofty promises.

The Trump accounts program, with its mix of public and private support, marks a new chapter in America’s ongoing conversation about opportunity, equality, and the promise of the next generation. Only time will tell whether these $1,000 investments will truly change the financial future for millions—or simply add another wrinkle to the nation’s complex economic story.