Trump Accounts offer tax-advantaged wealth-building for children, with crypto potentially on the horizon

The US government is essentially opening brokerage accounts for babies. Under a new initiative embedded in the One Big Beautiful Bill Act, every child born between January 1, 2025, and December 31, 2028, will receive a $1,000 seed deposit from the US Treasury, invested into domestic equity index funds or ETFs.

The accounts, officially branded as “Trump Accounts,” function like a junior IRA. Parents manage them custodially until the child turns 18, at which point the funds unlock for education, homeownership, or starting a small business. Growth is tax-deferred the entire time.

How the money works

The Treasury kicks in $1,000 at birth. After that, family members, employers, and community sources can contribute up to roughly $5,000 annually. Those additional contributions are not tax-deductible for the people making them.

Employer contributions get recognized up to $2,500, though again, employees can’t deduct those amounts. All investment gains compound tax-deferred until withdrawal at age 18.

The Council of Economic Advisers has run projections suggesting that if families max out contributions every year and the equity markets perform roughly in line with historical averages, these accounts could accumulate hundreds of thousands of dollars. Some scenarios project balances exceeding $1 million by the time the child reaches young adulthood.

Some proposals suggest that funds must be withdrawn or taxed by the time the account holder turns 31.

The program is slated for rollout in 2026, with a Treasury-managed app expected to launch between May and July of that year. An official website, trumpaccounts.gov, will serve as the primary resource.

The crypto angle

Trump Accounts are currently limited to traditional US equities, specifically index funds and ETFs. No crypto tokens or digital assets are currently included in the investment options. President Trump has publicly indicated a willingness to explore future integrations with cryptocurrency, but no concrete plans exist.

What this means for investors

The program is designed to channel substantial long-term capital into US equity markets. If millions of families open these accounts and contribute annually, the cumulative inflows could meaningfully support asset prices over time.

The risk is that programs tied to a specific administration’s brand carry inherent uncertainty about longevity. A future Congress could modify the eligible investment options, change contribution limits, or sunset the program entirely after 2028.

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