Treasury Auto-Enrolls 70 Million Children in Trump Accounts With $1,000 Seed Money at Stake
Updated
Updated · Yahoo Finance · Oct 5
Treasury Auto-Enrolls 70 Million Children in Trump Accounts With $1,000 Seed Money at Stake
3 articles · Updated · Yahoo Finance · Oct 5
Summary
Nearly 70 million children under 18 with valid Social Security numbers were automatically placed into Trump Accounts on Oct. 1, replacing a voluntary signup system that had reached about 7 million children a week earlier.
Treasury said the switch is meant to broaden access and build long-term retirement savings, with Secretary Scott Bessent casting the accounts as a supplement to Social Security rather than a replacement.
Parents or guardians still must claim the account through the official app before eligible children born during Trump’s second term receive the $1,000 federal seed contribution; annual family contributions are capped at $5,000.
Wealthy donors can now fund groups of at least 5,000 children through controlled charities using individual stocks, and Treasury said it will work with state and local governments to reach roughly 350,000 eligible foster children.
Bessent said early balances could compound into large retirement nest eggs, framing the program as part of an “ownership economy” in which more Americans hold investment assets.