U.S. Parents Can Open ‘Trump Accounts’ for Kids Born 2025‑2028, With $1,000 Start‑Up Deposits and $250 Contributions

U.S. parents can open “Trump accounts” for children born 2025‑2028, getting $1,000 start‑up deposits and $250 contributions. SmartAsset highlights Utah and.

A New Savings Vehicle for Children

The “Trump accounts” are part of the One Big Beautiful Bill Act that was signed earlier this year. The accounts allow parents or guardians to open a savings fund for each child that will grow until the child turns 18. The funds are invested in the stock market, managed by private banks and brokerages, and must be placed in certain mutual funds or exchange‑traded funds that track the S&P 500 or another index of primarily American equities, as required by the IRS.

How the Accounts Work

• The accounts are treated like individual retirement accounts (IRAs).
• There are few limits on the contributions that can be made.
• Funds cannot be withdrawn until the child reaches 18.
• The money is intended for education, buying a home, or starting a business.

Parents who qualify can complete Form 4547. In May, those who sign up will receive information on how to finish opening the accounts. Beginning in July, the White House plans to launch a website where parents can register.

Eligibility and Funding

• Children born between Jan. 1, 2025, and Dec. 31, 2028, qualify for a one‑time $1,000 deposit from the U.S. Treasury.
• A recent $6.25 billion donation will fund $250 contributions for roughly 25 million children who are 10 and younger and too old to qualify for the $1,000 deposit.
• Children in this latter group must live in a zip code where the median household income is under $150,000.
• Any remaining funds may be disbursed to children older than 10.

The first contribution cannot be made until after July 4.

State‑Level Projections

A recent report from personal finance site SmartAsset analyzed state populations and fertility rates to project how many babies may be born each year. The analysis considered women aged 20‑34 and the associated fertility rates, using U.S. Census Bureau data.

Utah Leads the Pack

Utah is expected to see the greatest benefit from the “Trump accounts.” The state has a high fertility rate among young women—97 births per 1,000—and a large prevalence of young women, roughly 12% of the population. SmartAsset projects more than 34,000 births annually in Utah.

Other States With High Birth Rates

California is projected to have more than 344,000 babies born each year, followed by Texas (278,232) and Florida (180,880). New York, Illinois, and Pennsylvania may also see more than 100,000 newborns each year.

States With Fewest Births

Wyoming (4,491), Vermont (4,884), and Alaska (6,426) are expected to have the fewest babies born yearly.

The interactive map from SmartAsset shows estimated per‑capita replacement rates, and clicking a state reveals projected annual birth rates, prevalence of young women, and forecasted births per 1,000 young women.

What Parents Need to Know

Parents who have a child with a Social Security number can open a “Trump account.” The accounts are open to all U.S. children, but the startup funds are limited to the age ranges described above. The accounts will be managed by private institutions, and the investments are limited to specific mutual funds or ETFs that track American equity indices.

The White House will release more details later this month on the account setup process. Until then, parents should prepare by gathering their child’s Social Security number and confirming their child’s age and zip‑code income eligibility.

Key Takeaways

• Children born 2025‑2028 qualify for a $1,000 start‑up deposit.
• Children 10 and younger may receive $250 contributions if they live in a zip code with median income under $150,000.
• Utah is projected to benefit most, with over 34,000 births per year.
• California, Texas, and Florida will have the highest overall birth counts.
• Accounts are invested in U.S. equity‑based mutual funds or ETFs and cannot be accessed until age 18.

Final Thoughts

The “Trump accounts” offer a new way for families to plan for their children’s financial future. With projected high birth rates in several states, the program could create millions of new savings accounts. Parents should stay informed about the upcoming website launch and the detailed instructions that will be released later this month.