President Trump on Wednesday touted the automatic enrollment of millions of American children into his administration's investment accounts, a program he says will help the next generation build substantial wealth. Flanked by administration officials, business leaders, and Sen. Ted Cruz (R-Texas) in the Oval Office, Trump predicted that the accounts, dubbed "Trump Accounts," would leave children "quite rich" by the time they reach adulthood.
The accounts were created under the One Big Beautiful Bill Act, and the Treasury Department's new rules, released last week, mandate that every eligible child under 18 with a valid Social Security number receive an account. Treasury Secretary Scott Bessent said this auto-enrollment would expand the program to more than 60 million additional children, while Trump noted that nearly 8 million already had accounts.
Social Security Administration (SSA) Commissioner Frank Bisignano reported that over 10 million of the roughly 70 million accounts are already funded with $4.5 billion, and he predicted that by this weekend, 25 million children would hold a combined $7 billion. The SSA is also working with states to include an option for parents to open accounts for newborns on hospital forms.
Proponents, including Cruz and Bessent, framed the accounts as a way to create a new generation of capitalists. Cruz told a group of middle schoolers in the Oval Office that they now "own part of Apple, Dell, and McDonald's." The government will automatically invest funds in a State Street SPDR Portfolio ETF tracking the S&P 500, with parents able to choose among four other ETFs. Bessent called the initiative a "real-time financial literacy" project, teaching children about compounding interest and the stock market.
Trump argued that the accounts would have a "huge effect" in curbing support for socialism, citing a Gallup poll showing 57% of Americans aged 18-34 view socialism positively. He called the accounts "the alternative [to socialism], and it's a great alternative."
The Trump Accounts join other savings vehicles for children, such as custodial accounts, Roth IRAs for kids, and 529 plans. While 529 plans offer tax-free growth for education expenses, earnings on Trump Accounts are taxed upon withdrawal. Financial experts suggest families with education goals may still prefer 529 plans, using Trump Accounts as seed money for other future needs.
Notably, the program has drawn bipartisan support. Maryland Gov. Wes Moore (D) praised the accounts as "smart policy," comparing them to baby bonds, a concept proposed by economists Darrick Hamilton and William Darity to address the racial wealth gap. Moore said baby bonds are "one of the fastest ways" to tackle child poverty and wealth inequality.
The administration's approach, however, does not specifically target low-income children. A $6.25 billion donation from Dell CEO Michael Dell and his wife, Susan Dell, is directed toward the program, though details on its use remain limited. As the rollout continues, the political and economic implications of this unprecedented auto-enrollment will likely be scrutinized.
