Trump Launches $1,000 Child Investment Accounts as Fewer Than 10% of Eligible Kids Enroll
Updated
Updated · The New York Times · Jul 24
Trump Launches $1,000 Child Investment Accounts as Fewer Than 10% of Eligible Kids Enroll
3 articles · Updated · The New York Times · Jul 24
Summary
Babies born since Jan. 1, 2025 can receive $1,000 from the federal government if a parent opens a Trump Account, a new child investment account limited to low-cost index funds.
About 6.5 million children have accounts so far—less than 10% of those eligible—and only about a quarter of children who qualify for the $1,000 seed money have enrolled.
Enrollment has lagged because many sign-ups initially ran through tax returns, awareness is low among poorer families, and the accounts only began accepting investments on July 4 as the administration focused on rollout.
Researchers say opt-in design could undercut the program’s goal of narrowing wealth gaps: auto-enrollment produced 99% to 100% participation in similar programs in Maine and Oklahoma.
The accounts have bipartisan roots and could grow $1,000 to roughly $6,000 by age 18, but critics say Trump branding and uneven outreach risk making them another subsidy mainly used by wealthier families.