Social Security to Add Newborns to Trump Accounts at Hospitals for 3.6 Million Annual Births
Updated
Updated · The New York Times · Jul 3
Social Security to Add Newborns to Trump Accounts at Hospitals for 3.6 Million Annual Births
3 articles · Updated · The New York Times · Jul 3
Summary
Parents who request a newborn’s Social Security number at a hospital, birthing center or through a licensed midwife will also be able to enroll the child in a Trump account, the Social Security Administration said Friday.
The change, with hospital guidance updates due next week, would fold the investment program into the existing birth-registration process and sharply widen access beyond today’s separate form or tax-return checkbox.
Trump accounts open for contributions on Saturday for children under 18 with Social Security numbers, with funds invested in low-cost index funds and a one-time $1,000 Treasury deposit for eligible children born from Jan. 1, 2025, through Dec. 31, 2028.
It remains unclear when hospitals will offer the option or who will cover the added administrative costs, which could otherwise draw on Social Security trust funds that already face financing shortfalls.
The accounts were created in last year’s tax-and-spending law and convert to IRAs at age 18, when withdrawals are allowed for uses such as college, a home purchase or retirement.
How will turning every newborn into a stock market investor reshape the nation's financial future?
Could uncapped administrative fees threaten the long-term growth of these new child investment accounts?
With private and public funds combined, what is the true long-term goal of this initiative?
Trump Accounts 2026: $1,000 Federal Seed Money Reaches Few as Opt-In Barriers Limit Impact
Overview
The Trump Accounts program, launched in July 2026, introduces a new savings plan designed to give children a financial head start. Individuals, employers, and other entities can deposit money into these accounts, where funds grow tax-free. A key feature is a one-time $1,000 deposit from the Treasury Department for U.S. citizen children born between January 1, 2025, and December 31, 2028, provided they have a valid Social Security number. This federal seed money is targeted to assist specific demographics, aiming to expand opportunities for long-term financial growth and encourage early savings for future generations.