Government launches Trump Accounts, offering $1,000 to eligible babies

+ Accessibility links Skip to main content Keyboard shortcuts for audio player Open Navigation Menu --> Newsletters NPR Shop Get NPR+ Close Navigation Menu Home News Expand/collapse submenu for News National World Politics Business Health Science Climate Race Culture Expand/collapse submenu for Culture Books Movies Television Pop Culture Food Art & Design Performing Arts Life Kit Gaming Music Expand/collapse submenu for Music Tiny Desk New Music Friday All Songs Considered Music Features Live Sessions Podcasts & Shows Expand/collapse submenu for Podcasts & Shows Daily Morning Edition Weekend Edition Saturday Weekend Edition Sunday All Things Considered Up First Here & Now NPR Politics Podcast Featured Wait Wait...Don't Tell Me! Fresh Air Wild Card with Rachel Martin It's Been a Minute Embedded Get NPR+ More Podcasts & Shows Search Newsletters NPR Shop Get NPR+ Tiny Desk New Music Friday All Songs Considered Music Features Live Sessions About NPR Diversity Support Careers Press Ethics Government launches Trump Accounts, offering $1,000 to eligible babies The federal government has launched new tax-deferred investment accounts called Trump Accounts, offering $1,000 of seed money for eligible newborns. National Government launches Trump Accounts, offering $1,000 to eligible babies July 6, 20264:18 AM ET Heard on Morning Edition By Hosts Government launches Trump Accounts, offering $1,000 to eligible babies Listen &middot; 2:13 2:13 Transcript Toggle more options Download Embed Embed "> <iframe src="https://www.npr.org/player/embed/nx-s1-5880466/nx-s1-9837431" width="100%" height="290" frameborder="0" scrolling="no" title="NPR embedded audio player"> Transcript The federal government has launched new tax-deferred investment accounts called Trump Accounts, offering $1,000 of seed money for eligible newborns. Sponsor Message Transcript STEVE INSKEEP, HOST: Some other news now. The country's first federally backed investment accounts for children are now open.

+ MICHEL MARTIN, HOST: Congress created what are called Trump Accounts as part of last year's tax and spending law. As of July 4, parents can open one by filling out a tax form or by signing up on trumpaccounts.gov. INSKEEP: Each account comes with a perk that parents can opt into, a $1,000 deposit for eligible kids. It's available to any child who's a U.S. citizen with a Social Security number born during President Trump's second term, from 2025 to 2028. MARTIN: Friends and family, employers, nonprofits and state welfare agencies can also contribute to kids. New York Times personal finance economist Ron Lieber spoke with NPR's All Things Considered in February. (SOUNDBITE OF ARCHIVED NPR CONTENT) RON LIEBER: You would indeed be foolish not to opt in if you've got a kid who is eligible for the $1,000 or some other amount of money that a philanthropist or an employer might toss into the account. Look, it's free money. Anybody who's eligible should go get. INSKEEP: Kids can withdraw that money once they turn 18, at which point the initial $1,000 deposit should've grown. Financial planner Michael Reynolds with Indiana's Elevation Financial, ran the numbers for NPR. MICHAEL REYNOLDS: You fast-forward 18 years, at an 8% rate of return, that's going to give you just shy of $4,000. MARTIN: Just keep in mind, beneficiaries have to pay income tax on that growth. And most contributions are, for now, capped at $5,000 a year. INSKEEP: By comparison, traditional college savings accounts, known as 529 plans, do not tax any qualified education expenses. And they have no hard limit on annual contributions. MARTIN: As Ashley Dickson with Next Bloom Wealth in Missouri told NPR, parents can open both. ASHLEY DICKSON: It's not a, I have to contribute to one or the other. It's taking the amount that you can afford and maximizing it based on what the knowns are today, with the flexibility of changing tomorrow, a couple of years from now. INSKEEP: Some financial advisers say it's worth considering a Trump Account if only to get that $1,000 credit for a newborn. But it's up to parents whether they continue putting money into the account because there may be better options depending on your goals and how much money you have to put in. (SOUNDBITE OF WU-TANG CLAN SONG, "SLOW BLUES") Copyright &copy; 2026 NPR. All rights reserved. Visit our website terms of use and permissions pages at www.npr.org for further information. Accuracy and availability of NPR transcripts may vary. Transcript text may be revised to correct errors or match updates to audio. Audio on npr.org may be edited after its original broadcast or publication. The authoritative record of NPR’s programming is the audio record. Facebook Flipboard Email Read & Listen Home News Culture Music Podcasts & Shows Connect Newsletters Facebook Instagram Press Public Editor Corrections Transcripts Contact & Help About NPR Overview Diversity NPR Network Accessibility Ethics Finances Get Involved Support Public Radio Sponsor NPR NPR Careers NPR Shop NPR Extra Terms of Use Privacy Your Privacy Choices Text Only Sponsor Message Sponsor Message Become an NPR sponsor (function () { var loadPageJs = function () { (window.webpackJsonp=window.webpackJsonp||[]).push([[22],{309:function(e,n,o){o.p=NPR.serverVars.webpackPublicPath,Promise.all([o.e(1),o.e(2),o.e(3),o.e(4),o.e(80)]).then((e=>{o(15),o(770),o(154),o(175),o(93),o(448),o(253),o(128),o(130),o(755),o(174),o(756),o(254),o(77),o(774)}).bind(null,o)).catch(o.oe)},783:function(e,n,o){e.exports=o(309)}},[[783,0]]]); }; if (document.readyState === 'complete') { loadPageJs(); } else { window.addEventListener('load', function load() { window.removeEventListener('load', load, false); loadPageJs(); }); } })();