Trump Accounts Enroll Under 10% of Eligible Children as $1,000 Benefit Draws Inequality Criticism
Updated
Updated · The American Prospect · Jul 24
Trump Accounts Enroll Under 10% of Eligible Children as $1,000 Benefit Draws Inequality Criticism
3 articles · Updated · The American Prospect · Jul 24
Summary
Less than 10% of eligible U.S. children have enrolled in Trump Accounts, the new federal investment program for babies born from 2025 through 2028 that launched July 4 with a one-time $1,000 government deposit.
The accounts let parents contribute up to $5,000 a year and employers $2,500, with funds defaulting into an S&P 500 index ETF—features critics say favor families already able to save and leave poorer households behind.
Economists cited in the report say the flat structure could widen racial and wealth gaps, noting Black families hold 13 cents of wealth for every dollar held by white families and may be less able to add money.
The program also faces rollout problems, with some families saying the federal $1,000 deposit has not yet appeared, while the Social Security Administration is moving sign-up to hospitals for newborns.
The report contrasts Trump Accounts with 'baby bonds' proposals that scale public deposits by family wealth—such as Connecticut's $3,200 automatic accounts—arguing those models target poverty and inequality more directly.