Trump accounts, the new children’s savings program launched by the U.S. Treasury, will provide millions of eligible children with a $1,000 initial deposit from the federal government. Nearly three dozen major corporations and philanthropists have pledged to match the government seed money with their own contributions, according to Treasury Secretary Scott Bessent.
Any child under 18 with a Social Security number can establish a Trump account, though only children born between January 1, 2025, and December 31, 2028, qualify for the $1,000 government deposit. Parents, family members, friends, and employers can contribute up to $2,500 per year beginning July 5, with a $5,000 annual cap on total contributions.
Major Companies Pledge Support for Trump Accounts
Technology giants including Nvidia, Intel, IBM, Broadcom, and Dell Technologies have committed to matching contributions to Trump accounts. Additionally, Coinbase, Block Inc., and Uber have joined the initiative, along with companies such as Charter Communications, Comcast, Chipotle Mexican Grill, and Steak ‘n Shake.
Citi recently announced its participation on February 5, with the Citi Foundation pledging $5 million to boost program awareness and provide enrollment support. “Matched savings programs have a long track record of helping families take that first step toward building assets, and we’re excited about the possibilities that Trump accounts can open up for Americans,” Brandee McHale, president of the Citi Foundation, told Yahoo Finance.
Philanthropists Commit Billions to Children’s Savings
Michael and Susan Dell are providing $250 contributions to eligible children aged 10 and under living in ZIP codes with median incomes of $150,000 or less. The commitment is estimated at $6.25 billion, representing one of the largest individual pledges to the program.
Hedge fund founder Ray Dalio and his wife Barbara pledged $250 each to approximately 300,000 children in Connecticut ZIP codes with household median incomes below $150,000. Meanwhile, Altimeter Capital CEO Brad Gerstner committed to donating $250 to each Indiana child under five with a Trump account.
How Employer Matching Works for Children’s Savings
The employer-matching feature functions similarly to traditional 401(k) retirement plans, according to Lindsey Stanberry, family financial advisor for Babylist.com. Charitable organizations and state governments can also make contributions that do not count against the annual limit.
Treasury Secretary Bessent reports that 20 U.S. states are working to meet the administration’s “50 State Challenge” to help fund the accounts. However, specific details about state-level commitments have not been disclosed.
Experts Say Program Could Shift Savings Culture
Financial experts indicate that Trump accounts, combined with employer contributions, could help reframe conversations about early childhood savings. “Adding the cash incentive could encourage more families to prioritize investing in these accounts,” Stanberry said, noting that families with access to employer matching programs will find it easier to build wealth through the initiative.
McHale emphasized that helping households understand Trump accounts and assisting with account openings will be crucial to the program’s success. The Citi Foundation’s $5 million commitment aims to address these educational needs and encourage broader participation.
Comparing Trump Accounts to Traditional Savings Options
Trump accounts differ from existing savings vehicles like 529 plans and traditional IRAs in several key ways. While 529 accounts offer higher contribution limits and tax-free investment earnings for qualified education expenses, Trump accounts provide more flexibility in how funds can be used.
Children can use Trump account funds to pay for college, purchase a home, or hold the money for retirement, according to Stanberry. However, unlike 529 plans, taxes are paid on investment earnings when withdrawing from Trump accounts, similar to traditional IRAs.
Stanberry noted that families don’t need to choose just one savings vehicle. “Families can open a Trump account to take advantage of the $1,000 seed money and any employer match while also contributing to a 529 to maximize their child’s educational funding,” she explained.
The program officially begins accepting contributions on July 5, though specific enrollment procedures and platform details remain to be announced by the Treasury Department. The success of the initiative will likely depend on continued corporate participation and effective outreach to eligible families.
