Trump Launches ‘Trump accounts’ for children, Says $800 Million will enter uS stock market this week

US President Donald Trump has announced the rollout of Trump Accounts, a new government-backed investment programme aimed at helping American children build long-term wealth through the stock market.

Speaking at the White House on Monday, Trump said that more than $800 million would be invested in the US stock market this week on behalf of eligible children as the accounts officially go live.

According to the President, the initiative combines federal seed funding with voluntary contributions from families, individuals, charities and private organisations.

What Are Trump Accounts?

The Trump Accounts programme was created under the 2025 US tax law signed by President Trump.

The scheme is designed to encourage long-term investing by allowing eligible children to hold tax-advantaged investment accounts from an early age.

Under the programme:

• Every eligible child born between January 1, 2025, and December 31, 2028, who is a US citizen with a valid Social Security number, qualifies for a one-time federal deposit of $1,000.
• Parents or legal guardians can open the account.
• Family members, friends, employers, charities and certain government entities can contribute up to $5,000 annually.

Initial Investments to Track the S&P 500

According to the US Treasury Department, all initial contributions will be invested in the State Street SPDR Portfolio S&P 500 ETF.

Account holders will later have the option to switch to one of four other approved exchange-traded funds (ETFs), including:

• iShares Core S&P 500 ETF (IVV)
• iShares Core S&P Total US Stock Market ETF (ITOT)
• Vanguard Total Stock Market ETF (VTI)
• State Street SPDR Portfolio S&P 1500 Composite Stock Market ETF (SPTM)

The programme is intended to provide broad exposure to the US stock market through diversified index funds.

Trump Hints at Similar Plan for Adults

During the announcement, Trump also revealed that his administration is exploring a similar investment programme for adults.

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He said the proposal would be discussed with Congress and could be modelled on a comparable initiative introduced by the Australian government.

According to Trump, such a programme would focus on helping adults build long-term savings through investments, although no timeline has been announced.

Support from Business Leaders

The launch event also featured prominent business figures supporting the initiative.

Michael Dell, founder of Dell Technologies, and his wife Susan Dell attended the event after reportedly pledging $6.25 billion towards the programme.

Meanwhile, Gwynne Shotwell, President and Chief Operating Officer of SpaceX, announced that she and her husband would each donate one share of SpaceX to more than 2 million Trump Accounts.

In a post on X, Shotwell said their contribution would specifically benefit children aged 11 to 17 living in lower-income communities, with additional emphasis on families residing near central Texas.

Market Performance

As the programme launched, US markets traded mixed.

At the time of reporting:

• The SPDR S&P 500 ETF (SPY) was up 0.55%.
• The Invesco QQQ Trust ETF (QQQ) gained 1.54%.
• The SPDR Dow Jones Industrial Average ETF Trust (DIA) slipped 0.33%.

The launch of Trump Accounts marks a significant expansion of government-supported investment initiatives in the United States, with the programme aiming to encourage early participation in financial markets and long-term wealth creation for future generations.