The Trump administration officially launched a new child savings program on Saturday, introducing investment accounts for American children under 18, accompanied by a one-time $1,000 federal deposit for eligible babies. Known as Trump Accounts, these investment vehicles aim to provide a stake in the stock market for millions of children, with additional contributions allowed from families, employers, charities, and governments.

The program is open to children with Social Security numbers under age 18, including those born between January 1, 2025, and December 31, 2028, who qualify for the initial $1,000 deposit upon enrollment. As of the launch, more than 6 million accounts have been opened, with 1.4 million eligible babies registered for the federal seed deposit. This represents less than 10% of the estimated 72 million minors in the United States, and about a quarter of babies born so far in 2025 who qualify for the $1,000 contribution.

Funds in these accounts are invested in low-cost index funds, beginning with the SPYM exchange-traded fund that tracks the S&P 500, with plans to offer additional ETFs. The accounts transition to individual retirement accounts (IRAs) when beneficiaries reach 18, allowing penalty-free withdrawals for specific uses such as higher education expenses or first home purchases. Otherwise, funds are accessed under standard IRA rules, typically at retirement age.

The administration projects that the initial $1,000 investment could grow to approximately $6,000 by the time a child turns 18, assuming no other contributions. Families, friends, employers, and others can contribute up to $5,000 per year per child, while employers may contribute up to $2,500 annually on behalf of employees’ children as part of that limit. Contributions from states, nonprofits, and other organizations do not count toward the annual cap.

More than 50 companies, including major financial firms and corporations like Goldman Sachs, Morgan Stanley, BlackRock, Intel, JPMorgan Chase, and Uber, have signed on to contribute to employee children’s accounts. Philanthropic donors, such as the Dell Foundation, have pledged hundreds of millions in contributions targeted at children living in moderate-income areas. Some states, like Oklahoma, have also committed funds to supplement accounts for local children.

Despite the program’s ambitious scope, experts and observers have noted several challenges affecting participation rates. Awareness remains limited; a recent survey found only about 20% of U.S. adults recognized the accounts, with even lower recognition among those earning less than $25,000 annually. Additionally, requiring parents to enroll through tax forms has hindered broader adoption, and some families may be deterred by the program’s association with former President Donald Trump.

Critics caution that the accounts risk exacerbating existing wealth disparities, as families already comfortable with investing—typically higher-income, white, and college-educated households—are more likely to contribute additional funds and benefit substantially. This potentially widens the racial and economic wealth gaps, given that access to investment opportunities remains uneven across different communities. Researchers argue that automatic enrollment and targeted outreach could help mitigate these effects.

Administration officials acknowledge these concerns and emphasize ongoing efforts to reach low-income families, including partnerships with community organizations, educational initiatives, and public awareness campaigns. First Lady Melania Trump has highlighted provisions to extend accounts to foster children. Treasury Secretary Scott Bessent described the program as a way to ensure “every American child can benefit from private ownership and compound growth.”

The Trump Accounts initiative represents a significant federal investment, with projected costs of approximately $17 billion through 2028. While early uptake has fallen below initial expectations relative to the eligible population, supporters view the program as an important step toward expanding financial inclusion and promoting long-term savings habits among young Americans.