Trump Accounts could benefit kids. But can they access them?

August 10, 2026

The Trump Accounts program, created through the 2025 One Big, Beautiful Bill Act, provides $1,000 in tax-deferred savings accounts for qualifying children, but requires parents to actively enroll rather than being automatic. Since launching on July 4, only 39 percent of eligible children have been registered, leaving billions in potential benefits unclaimed as families like Trinity Coleman's nearly miss out entirely. Research shows automatic enrollment produces nearly 100 percent participation compared to just 5.

Who is affected

Children born in 2025 and their families, particularly Trinity Coleman's twins and an estimated 3.6 million qualifying children
Low-income families who qualify for the $1,000 seed money (1.4 million enrolled out of 3.6 million eligible)
Nonprofit organizations and community agencies that conduct outreach
VITA (volunteer income tax assistance) programs and their volunteers
Consumer Financial Protection Bureau (CFPB) staff and constituents
Dave Sieminski (retired CFPB employee working in asset-building)
Jin Huang and colleagues at Washington University's Center for Social Development
Alphonso McDonald Jr. and 124 other participants in Colorado's Ignite Futures Fund pilot program
Families previously served by Individual Development Accounts programs
Future beneficiaries who may lose eligibility for Medicaid, SNAP, Pell Grants, and SSI due to account assets

What action is being taken

Parents are enrolling qualifying children in Trump Accounts and requesting seed money through the IRS
The Treasury Department is operating the Trump Accounts app with 15-part interactive educational modules
Tax-filing software like TurboTax is asking 2025 tax filers about enrollment during the filing process
Ray Boshara's team at the Aspen Institute and Washington University Center is working through legal questions regarding automatic enrollment and taxpayer information disclosure
Gary Community Ventures and Impact Charitable are running the Ignite Futures Fund pilot studying 125 young people with $20,000 accounts
Michael and Susan Dell are providing $250 to children under 10 in lower-income ZIP codes through a $6.25 billion pledge
Several state programs are extending the program's reach beyond federal contributions
Parents, grandparents, and employers are contributing additional funds to accounts (capped at $5,000 and $2,500 respectively)

Why it matters

This represents the first time the United States has incorporated a wealth-building component into its social contract, moving beyond income support alone. The program has potential to significantly impact intergenerational wealth inequality, as research demonstrates that even $1,000 can grow to approximately $2,600 by age 17 and produce measurable benefits in children's social-emotional development and mothers' mental health. However, the opt-in structure threatens to perpetuate existing inequalities, as evidence shows automatic enrollment achieves 99.9 percent participation versus just 5.5 percent with opt-in systems, meaning the families who could benefit most are least likely to access these resources. The program's effectiveness is further undermined by weakened outreach infrastructure, potential conflicts with means-tested benefits eligibility, and lack of progressive incentives that would provide additional support to lower-income families who cannot contribute their own savings.

What's next

Potential extension of the $1,000 pilot deposit beyond the current 2028 cutoff (has broad bipartisan support, including from Republican Sen. Ted Cruz)
Possible implementation of automatic enrollment (supported by Sen. Ted Cruz)
Working through legal requirements for automatic enrollment related to disclosing private taxpayer information with financial institutions
Democrats pursuing deposits that provide more to lower-income families at birth
Potential protections to ensure Trump Account savings don't disqualify young adults from Medicaid, food stamps, SSI, or student aid at age 18
Determining whether improvements come through administrative action or require new legislation
Ignite Futures Fund will follow participants for five years beginning just before they turn 18

Read full article from source: The 19th