60 MILLION KIDS ENROLLED: Treasury Automatically Opens Trump Accounts for Nearly Every Eligible American Child — But Parents Still Need to Claim Them
More than 60 million American children have now been automatically enrolled in Trump Accounts, dramatically expanding President Donald Trump’s new investment program and giving virtually every eligible child under 18 an account even if their parents never signed them up.
The Treasury Department confirmed that it completed the massive automatic-enrollment process on October 1. Every eligible child under 18 with a valid Social Security number who did not already have an account now has one established on his or her behalf, with Treasury planning periodic automatic enrollment for newly eligible children going forward.
But there is an important catch for parents: an automatically created account generally must still be claimed by a parent or guardian before the family can manage it and make ordinary contributions. Parents of children eligible for the federal government’s $1,000 starter payment must also take action to request that money.
“Millions of children have already enrolled in Trump Accounts. With automatic enrollment, over 60 million more eligible children now have an account ready to be claimed,” Treasury Secretary Scott Bessent said. “This is a transformative milestone in the Trump Administration’s effort to give every American child the opportunity to build generational wealth and jump-start their financial future.”
The sweeping expansion marks a major change from the program’s original rollout, when parents or guardians had to affirmatively register children. Roughly 7 million children had been signed up before Treasury shifted to automatic enrollment, while Bessent has said the potential eligible population could ultimately approach 70 million children.
The accounts, formally known as Section 530A accounts, were created under Trump’s signature tax and spending legislation. They are designed to give children an early foothold in the investment markets, with money generally invested in diversified, low-cost funds tied to the American stock market.
Treasury officials said one reason for switching to automatic enrollment was to ensure that large charitable contributions could reach children regardless of whether their parents happened to know about the program or had completed the registration process.
That issue became particularly significant after Michael and Susan Dell announced a $6.25 billion commitment intended to provide $250 for approximately 25 million children. The initiative focuses largely on children who are 10 or younger and live in ZIP codes with median household incomes below $150,000, subject to the program’s eligibility requirements.
The government’s decision to create accounts automatically means philanthropic programs can potentially reach a far broader pool of children rather than being limited to those whose parents had already registered.
Parents whose children were automatically enrolled still have several steps to complete if they want to take control of the accounts.
Treasury says a parent or guardian should download the official Trump Accounts app, available for iOS and Android devices. During the claiming process, the adult must verify his or her identity, establish the relationship to the child, review the child’s information and accept the account terms.
Once the account is claimed, parents can manage it and family members, friends and employers can begin making ordinary contributions.
The distinction between being automatically enrolled and having a fully claimed account is especially important for parents of babies and young children who qualify for the government’s $1,000 seed contribution.
Children born between January 1, 2025, and December 31, 2028, who meet the program’s eligibility requirements can receive a one-time $1,000 federal contribution. Automatic enrollment by itself does not cause that $1,000 payment to be deposited. An authorized parent or guardian must claim the account and request the federal seed money.
The broader eligibility rules extend considerably further. Any eligible child in the United States who is under 18 and has a valid Social Security number can have a Trump Account, even if the child was born outside the 2025-through-2028 window and therefore does not qualify for the federal government’s $1,000 contribution.
The IRS has specified an additional qualification for children whose Social Security cards carry the notation “Valid for Work Only with DHS Authorization.” In those cases, the Social Security number is considered valid for purposes of the program only while the underlying Department of Homeland Security authorization remains valid.
Beyond the federal $1,000 payment available to qualifying young children, millions of children may be eligible for additional seed money from private donors, employers, state or local governments and philanthropic organizations.
The rules were structured to encourage those large-scale contributions. Qualified contributions from governments and certain charitable initiatives do not count against the ordinary annual contribution limit, allowing children to receive those payments in addition to money deposited by their families.
Parents, grandparents, other relatives and friends can also contribute. Ordinary contributions are generally subject to an annual limit of $5,000 per child.
Employers can contribute as well. Employer payments are capped at $2,500 annually and count toward the broader $5,000 annual limit. A number of major American companies have already announced programs to make or match contributions for the children of employees.
Those dollar limits are not permanently fixed. The IRS says the contribution caps will be adjusted over time for inflation.
The accounts differ in several important ways from traditional 529 college-savings plans. Trump Accounts are intended as broader long-term investment vehicles rather than accounts restricted primarily to educational expenses.
During the child’s growth period, the money is generally invested and allowed to compound. The IRS defines that period as ending on December 31 of the year before the beneficiary turns 18.
After the beneficiary reaches adulthood, money can ultimately be used for purposes including higher education, purchasing a first home or starting a business. The tax treatment of withdrawals can vary depending on how and when the money is distributed.
Early distributions may trigger additional taxes, although the IRS notes that exceptions may apply “such as for distributions for higher education expenses or first home purchases.”
One of the administration’s central arguments for Trump Accounts is that even relatively modest amounts invested at birth could become substantial sums if left invested for decades.
Bessent has previously illustrated the potential by considering a child who receives only the government’s $1,000 seed payment and never receives another contribution. Assuming the S&P 500 were to continue producing an average annual return of approximately 10.5%, he has estimated that the original $1,000 could eventually grow to roughly $600,000 by retirement age.
That figure is an illustration based on an assumed long-term return rather than a guarantee. Stock-market returns fluctuate, and future performance could be substantially higher or lower than historical averages.
The White House Council of Economic Advisers has offered another scenario involving a child born in 2026 whose account receives the maximum permitted annual contributions. Its analysis estimated that such an account could exceed $300,000 by age 18 and potentially surpass $1 million by age 28 under a high-return scenario.
Those projections similarly depend on investment returns and continued contributions and should not be read as guaranteed account balances.
The automatic-enrollment policy also addresses a problem Treasury officials identified during the program’s initial months: millions of children qualified for accounts, but only a relatively small portion of families had actually completed enrollment.
Treasury concluded that requiring every parent to opt in could also undermine large charitable initiatives because donors seeking to help an entire class of children could reach only those whose parents had already registered.
Under the new system, Treasury itself makes the election necessary to establish an account for an eligible child who does not already have one. The department will continue periodically creating accounts as additional children become eligible.
The change means parents who ignored the original Trump Account rollout, missed the registration announcements or deliberately took no action may nevertheless discover that an account has already been established for their child.
It does not, however, mean parents have surrendered control of family money or that Treasury is automatically taking funds from them. The automatic process creates the account; ordinary family contributions still require action by the parent or guardian.
For families, the immediate question is therefore no longer simply whether their child qualifies for a Trump Account. For more than 60 million children, Treasury says the account is already waiting.
The next step belongs to the parents: claim it, determine whether the child qualifies for the $1,000 federal seed payment or other contributions, and decide whether they want to begin adding money of their own.
