Trump Accounts Get Overwhelming Response In Tax Day Filings

It’s Tax Day, and Treasury Secretary Scott Bessent reports that more than 5 million children have been enrolled in Trump Accounts, with the primary enrollment method being submitting IRS Form 4547 alongside a tax return.

The accounts will officially launch on July 4, and all accounts opened for kids born between January 1, 2025, and December 31, 2028, will automatically receive a $1,000 seed investment from the United States Treasury Department. 1.2 million of the 5 million kids who are signed up are eligible for that seed money. 

Companies and philanthropists have teamed up with Trump accounts in multiple states to match or add additional funds to the accounts. Hedge Fund Manager Brad Gerstner, who is credited with coming up with the idea for Trump Accounts, pledged to add $250 into every opened account for children under the age of five in Indiana. 

Trump Accounts could significantly reshape the financial outlook for many American families. Based on White House estimates, a child born in 2026 may accumulate roughly $5,800 in the account by age 18 without any additional deposits. If parents and employers consistently contribute the maximum allowed amounts, the total could rise to approximately $303,800 over that same period. Looking further ahead, projections suggest the balance could reach around $18,100 by age 28 without extra contributions, and as much as $1,091,000 with sustained maximum funding. 

Treasury Secretary Scott Bessent slammed critics at CNBC’s Invest In America Forum who claim it will increase inequality for children whose parents or whose parents’ employers are able to contribute more than others. 

“Look, the wealthy don’t need tax-advantaged funds,” Bessent said, dismissing critics who described the seed investment as too small as “elitist” and “tone-deaf.” He referenced a conversation with the Mortgage Bankers Association, noting that only about 30% of initiated mortgages are completed — often due to relatively small financial hurdles. “They said many buyers fall short because they don’t even have $1,000 to cover costs like credit checks or title insurance,” he said. “An additional $5,000 could help many more people get across the finish line.”

Each child’s account may receive up to $5,000 per year from a combination of contributions made by family members, friends, or employers. Bank of New York Mellon will manage the accounts in a partnership with Robinhood, which is developing the Trump Accounts app. The investment will be allocated across a broad mix of low-cost index funds, balancing growth potential with risk management. The goal is to launch a child into adulthood with financial support, allowing them to pay for education expenses, purchase a home, or start a business, all from the gains of the American Economy. 

The program was funded through the “Beautiful Bill,” with the possibility that future legislation could expand eligibility to include children born in later years.