Story perspectives

Treasury Launches “Trump Accounts” with $1,000 Newborn Deposit

7/4/2026

Summary

Trump Launches Accounts

U.S. Treasury launched Trump Accounts on July 4, with contributions beginning July 5 and a default SPYM ETF.
Each newborn receives $1,000, families may add up to $5,000, and over 6 million have enrolled.
The default SPYM tracks the S&P 500, charges 0.02% expense, and IVV, VTI, SPTM, ITOT will follow.
President Donald Trump and Treasury Secretary Scott Bessent called it a “down payment on the dream,” while California denied tax-deferred status.

Summary

Morningstar Projects

Morningstar estimates a 55-year-old with only the $1,000 seed would average $38,000, far below the $243,000 on TrumpAccounts.gov.
An annual $250 contribution raises the projected balance at age 18 to $15,154 versus $3,324 with no contributions.
A $2,500 yearly contribution could grow the account to $121,632 by age 55.
The bottom 25% may reach $0 by age 27 or 55 due to withdrawals, while higher-income families usually end with larger balances.

Summary

Trump Enrolls Newborns

The Social Security Administration will let parents enroll newborns in President Donald Trump accounts during birth registration.
Commissioner Frank J. Bisignano said Social Security numbers are the backbone and will trigger accounts from day one.
The enumeration-at-birth plan covers hospital, birthing-center and licensed-midwife deliveries, affecting about 3.6 million babies annually.
At age 18 the accounts become IRAs, allowing penalty-free withdrawals for college, home purchase or retirement, otherwise incurring a penalty.

1 of 3

Trump Launches Accounts

U.S. Treasury launched Trump Accounts on July 4, with contributions beginning July 5 and a default SPYM ETF.
Each newborn receives $1,000, families may add up to $5,000, and over 6 million have enrolled.
The default SPYM tracks the S&P 500, charges 0.02% expense, and IVV, VTI, SPTM, ITOT will follow.
President Donald Trump and Treasury Secretary Scott Bessent called it a “down payment on the dream,” while California denied tax-deferred status.

1 / 3