Trump Accounts To Debut Soon: Here's How To See If You Qualify In CA

SACRAMENTO, CA — President Donald Trump's controversial namesake "Trump Accounts" will hit the market July 4, offering families another option to invest in their children.

On Monday, the U.S. Treasury Department announced BNY will tap Robinhood as a brokerage firm and initial trustee for Trump Accounts — investment accounts aimed at newborns but available to any U.S. citizen under the age of 18.

The program, which was established under the contentious "One, Big, Beautiful Bill" passed last year, is designed to build long-term wealth for families. The program is expected to reach about 25 million children in the United States.

Families qualify for varying levels of seed money based on the median income of their community and the child's birth date. Others, who don't qualify for up to $1,000 in seed money, can simply take advantage of tax-friendly savings accounts for their children.

Last year, billionaires Michael and Susan Dell announced an historic donation that would allow children 10 and under who qualify for the program to receive $250 in seed money if their parents open an account. That money is reserved for children who live in ZIP codes with a median family income of $150,000 or less and who won’t get the $1,000 Pilot Program Contribution from the Treasury.

The U.S. Census Bureau website allows users to search for the median income in their neighborhoods by inputting their ZIP codes to see if they meet the income requirements for Trump Account seed money.

According to the Treasury Department, BNY will serve as a financial agent of the U.S. government, which will allow BNY to manage the initial accounts and help develop a new app for Trump Accounts. Robinhood and The National Design Studio, a government agency, will lead the development of the user interface for the Trump Accounts app.

"On the eve of the 250th anniversary of the nation, I think this is an evolution of the American dream," Robinhood CEO Vlad Tenev told CNBC on Tuesday.

"If you look at the American dream, it used to be about owning real estate and having a nice house with a white picket fence. I think increasingly that's evolving and now it's really about buying into American enterprise, and I think the ability to fund that from the start is an awesome initiative," he said.

In a statement, Robin Vince, CEO of BNY, said Trump Accounts will expand access to financial opportunities for all Americans.

"BNY has been part of the fabric of the U.S. financial system since our country’s founding, and through this landmark initiative, will help more Americans invest in our economy, strengthen U.S. capital markets and give more children a foundation for long-term financial security," Vince said.

What Is A Trump Account?

Trump Accounts are a savings tool and tax-advantaged investment program where money is invested in the stock market on behalf of a child born between Jan. 1, 2025, and Dec. 31, 2028. The child can’t access the money until they turn 18 and can only use it for specific purposes, such as paying tuition, starting a business or making a down payment on a home.

After a parent opens an account, the U.S. Treasury will contribute $1,000 for newborns. Private banks and brokerages will manage the money, which must be invested in U.S. equity index funds that track the stock market and charge the accounts no more than 0.10 percent in annual fees.

Parents can contribute up to $2,500 annually in pretax income, much like they do for retirement accounts. Parents’ employers, relatives, friends, local governments and philanthropic groups can also pitch in. Yearly contributions are capped at $5,000, but contributions from governments and charities don’t count toward that total.

Who Gets $1,000?

To qualify for the $1,000 investment, a baby must be a U.S. citizen and have a Social Security number. Any parent can open an account for a qualifying child, regardless of the parent’s immigration status.

The child will not be able to access the money until they turn 18, except in rare circumstances, so it can’t help with immediate expenses. And disbursements from the accounts will be subject to taxes.

What About Older Children?

Children born before 2025 won’t qualify for the $1,000 incentive, but parents can still open accounts for them as long as they’re under 18. Parents can still invest up to $2,500 pretax for those kids, and they may benefit from the Dells’ donation, giving $250 to children 10 and under in ZIP codes with a median family income of $150,000 or less.

How Do Parents Open Accounts?

Parents can begin contributing to their Trump Accounts in July 2026. Parents of eligible children can sign up by filling out Form 4547 from the Internal Revenue Service or by visiting the Trump Accounts website.

In May, parents who sign up will get information about how to finish opening the accounts. Beginning in July, the White House says it will have a website where parents can register for the accounts.

What’s The Idea Behind The Accounts?

Backers of the accounts say they want to introduce more people to the stock market and give even children born into poverty a chance to benefit from it. They believe that giving every newborn $1,000 will help combat the rising popularity of socialism and offer more people the opportunity to build wealth. About 58 percent of U.S. households held stocks or bonds in 2022, according to the U.S. Securities and Exchange Commission, though the wealthiest 1 percent owned almost half the value of stocks in that same year.

Before Trump created the accounts, California, Connecticut and the District of Columbia were piloting “baby bonds” programs that are similar to Trump Accounts in some ways. Several other states, including Maryland, are weighing programs.

But those programs are targeted for youth growing up in poverty or foster care, plus children who lost a parent to COVID-19. Wealthier children don’t benefit.

They’re also managed by the state, not private investment firms.

What Do Critics Say?

Critics point out the accounts do little to help children in their early years, when they’re most vulnerable and most likely to experience poverty. They also say the accounts do little to offset the cuts the Trump administration and congressional Republicans have made to other programs that benefit young people and their families, including food assistance and Medicaid.

Republicans created the accounts in the same Trump tax bill that reduced spending for some of those programs.

And even with the contribution from the government, critics say the Trump Accounts will widen the wealth gap. Affluent families that can afford to make the maximum pretax contribution to the accounts will realize the greatest benefits. Poor families who can’t afford to set aside money for the accounts will benefit the least. Assuming a 7 percent return, the $1,000 investment would grow to roughly $3,570 over 18 years.

Patch Editor Fernando Haro and the Associated Press contributed to this report.