SEC Clears Launch of Trump Accounts With $1,000 Treasury Seed Deposit

The Securities and Exchange Commission said families can now open "Trump Accounts," a new tax-advantaged savings program for children that includes a one-time $1,000 federal seed contribution. Created under the 2025 reconciliation law, the accounts are established in the tax code under IRC Section 530A and are structured as a form of traditional IRA. Eligibility is limited to U.S. citizens born between Jan. 1, 2025, and Dec. 31, 2028. For each eligible child, the U.S. Treasury provides a one-time $1,000 contribution. The funds are designed to be invested primarily in broad market index strategies. The program formally launched on July 4, 2026. A dedicated mobile app for account management became available earlier, on May 28, 2026. The SEC's Division of Trading and Markets issued no-action relief in May 2026, allowing broker-dealers and fund managers to participate during the rollout without enforcement risk tied to the program's launch. By late March 2026, more than 4 million Trump Accounts had been opened, with over 1 million already claiming the initial federal seed deposit. Individuals and philanthropic organizations have also contributed additional funds to children's accounts. Digital assets proposal: SEEDS Act Lawmakers have proposed the SEEDS Act, which would make the program permanent and broaden investment options to include digital-asset indexes. Market implications Near-term flows are expected to favor traditional equities, as default allocations point to S&P 500 index funds and similar ETFs. With more than 4 million accounts, even at $1,000 apiece, potential index-fund inflows exceed $4 billion.