Yesterday, the White House and Treasury Department rolled out Trump accounts to big fanfare.

At a star-studded event featuring rapper Nicki Minaj, Shark Tank host and entrepreneur Kevin O’Leary, and CEOs of major American corporations, President Donald Trump touted his new investment vehicles for every baby born in the United States over the next few years. 

Trump Accounts were passed as part of the Working Families Tax Cuts (aka the One Big, Beautiful Bill) in 2025 by conservatives in Congress. Every baby born in the next few years will automatically receive a $1,000 seed into investment accounts that they own.

Trump Accounts will ensure that every child, no matter their background, can enter adulthood with a strong financial start.

Here are 5 Things to Know about Trump Accounts:
  1. Every baby gets one. Every baby born from January 1, 2025, through December 31, 2028, whose parent is a citizen. Trump Accounts are universal, so every child in America, regardless of financial background, can receive the seed funding.
  2. Can be contributed to by anyone. Any person or entity can contribute to a baby’s account: Parents, churches, charities, local governments, and companies can also contribute up to $5,000 a year to the account. 
  3. Delivers a new parental benefit. A growing list of corporations, from Steak ‘n Shake to Intel, are offering their employees matching contributions to their children’s Trump Accounts.
  4. Teaches financial literacy not taught in schools. Parents and kids will learn important financial lessons such as the power of compound interest, buying and trading stocks, saving and investing over spending, and planning for the future.
  5. Empowers the next new generation to start adulthood strong. Trump Accounts grow tax-free until age 18, when young adults then gain access to half of the funds—empowering them to pursue college or skills training, start a business, or put a down payment on a first home.
Trump Accounts: Small Budget Footprint, Massive Economic Imprint

Trump Accounts are a brilliant idea for many reasons, but one stands out from a policy perspective. Trump Accounts are not inflationary. Compared to the baby bonuses previously floated by conservatives, Trump accounts are not inflationary because they do not drive consumer spending but investing. As I wrote last year in The Hill:

Trump Accounts are a marked improvement from the baby bonuses floated last year. Most fundamentally, Trump Accounts reflect a shift in the purpose and outcomes of family-supporting policies. The downstream effects will be minor on the budget but major for the economy and society, such that these accounts should earn broad conservative support.

…

By focusing on saving for the future, Trump Accounts blunt inflationary fears and shrink fiscal impacts. Vice President JD Vance proposed a $5,000 baby bonus as a candidate, which Trump supported. Based on the most recent data from the National Center for Health Statistics, there were about 3.6 million births in 2023. A $5,000 baby bonus would have cost roughly $18 billion a year, whereas Trump Accounts are not likely to exceed $3 billion annually. These accounts are also time-limited, from Jan. 1, 2025, to Jan. 1, 2029, although the accounts may be renewed.

TumpAcounts.gov demonstrates the potential growth that 18-year-olds can look forward to: 

Women Know the Promise of the Trump Accounts 

Independent Women has lauded this proposal from the start. We believe Trump Accounts will “jumpstart the American dream, incentivize market participation, and unlock opportunities for children of all income levels and backgrounds.”

IW’s own mothers, grandmothers, and expecting mothers were present at the rollout event yesterday. 

“As an expecting first-time mom, I’m grateful this administration is prioritizing the next generation of American children and families,” said Lynn Bensur, communications director for Independent Women and an expectant mother.

Beth Parlato, senior legal counsel of Independent Women’s Law Center, mother of three, grandmother of three and one on the way, said, “As a grandmother, I care deeply about giving children a strong start… This is about empowering the next generation to succeed, and I’m looking forward to contributing to my grandkids’ accounts as a meaningful way to support their future.”

Bottom Line

Trump Accounts are a bright idea for America’s youngest that will bear fruit for a generation to come.