The Trump administration announced it will launch a new investment account program for children, called "Trump Accounts," on July 4. The program is designed to enhance the financial standing of millions of Americans under the age of 18.

Established under the One Big Beautiful Bill Act signed into law nearly a year ago, the program allows families to open accounts for children who do not turn 18 before the end of the calendar year in which the account is opened, according to the IRS.

As of the announcement, more than 6 million families have signed up to create accounts using IRS Form 4547, a reference to President Trump being the 45th and 47th president. Once active, family members, friends, and other adults can contribute up to $5,000 annually to each account, with this limit set to increase with inflation starting in 2028.

The Treasury Department will contribute $1,000 to accounts for children born between January and the launch date. Several companies have pledged to match this contribution for their employees' children.

A senior administration official stated that parental contributions will be "automatically invested" in the State Street SPDR Portfolio exchange-traded fund (ETF), known as SPYM, which is the lowest-cost S&P 500 index fund available.

More than 85 percent of the Trump Accounts opened so far are linked to families earning less than $200,000 annually. Additionally, philanthropic organizations, including the Dell Foundation, have committed to investing in the program. The Dell Foundation plans to sponsor 25 million accounts for children living in zip codes with a median income of $150,000 or less, providing a $250 deposit for each.

This initiative represents a coordinated effort between the White House, Treasury Department, private companies, and philanthropic groups to support the financial futures of young Americans.

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