A new federal savings program will provide newborns with a $1,000 government-funded investment account, with major banks and corporations pledging additional financial support for eligible families.
The initiative, known as “Trump Accounts,” was created under President Donald Trump’s tax legislation to help children build long-term wealth. Parents who open an account for a child born between Jan. 1, 2025, and Dec. 31, 2028, will receive a $1,000 seed deposit from the federal government. The funds are invested in U.S. equity index funds and generally cannot be accessed until the child turns 18.
Several large employers are boosting the program by matching the government’s contribution for their workers’ children. Bank of America and JPMorgan Chase confirmed they will each contribute $1,000 per eligible child, doubling the initial deposit. JPMorgan Chase CEO Jamie Dimon highlighted the firm’s focus on strengthening employees’ long-term financial security, while Bank of America reported it will also permit pre-tax payroll contributions.
Families can begin making contributions on July 4, according to the administration. Supporters describe the program as a way to expand access to investing and encourage long-term financial planning from birth.
