Trump Accounts, the new federal investment accounts for children, moved from launch to active stock-market investing Monday as President Donald Trump rang the opening bells for both the New York Stock Exchange and Nasdaq from the Oval Office, marking the first market opening after the accounts went live and opening a new savings option for eligible children in the U.S. Virgin Islands and across the country.
The accounts are not themselves publicly traded securities. Rather, they are tax-advantaged investment accounts created for children, with contributions invested in the stock market through low-cost index funds. Treasury announced that, at launch, all contributions will be invested by default in the State Street SPDR Portfolio S&P 500 ETF, known as SPYM, which tracks the S&P 500. Treasury said additional low-cost index ETF options, including IVV, VTI, SPTM and ITOT, are expected to become available for responsible parties to choose from in the coming months.
The White House said the bell-ringing marked the official launch of Trump Accounts and that the accounts were created under President Trump’s Working Families Tax Cuts Act. “With the ringing of the opening bell for the stock market, [Trump Accounts] will now begin to grow right along with our booming economy… Between individual contributions and the seed funds, $800 million in new capital will be invested in the stock market for America’s children this week,” Mr. Trump said, according to the White House.
Mr. Trump said the federal government had deposited the first $1,000 into more than 500,000 Trump Accounts. However, eligibility should be understood in two parts: Trump Accounts are broadly available for eligible children who have not turned 18 before the end of the calendar year in which the election is made and who have valid Social Security numbers; the one-time $1,000 Treasury pilot contribution is narrower and applies only to U.S. citizen children born between January 1, 2025, and December 31, 2028, with valid Social Security numbers, once the required election is made.
For Virgin Islands families, the V.I. Bureau of Internal Revenue has issued local guidance confirming that parents, guardians and other authorized individuals in the territory may use IRS Form 4547 to establish Trump Accounts for eligible children. BIR Director Joel Lee said the same form may be used to elect the $1,000 federal contribution for qualifying U.S. citizen children born from January 1, 2025, through December 31, 2028.
The guidance means eligible children in the U.S. Virgin Islands may participate under the same federal framework, with the broader account available to qualifying children under 18 and the $1,000 seed contribution limited to the 2025–2028 birth window.
The official Trump Accounts website says the account is in the child’s name and that the parent or other responsible party serves as custodian until the child turns 18. The site also says families can allow the money to grow on its own or contribute up to $5,000 per year. IRS guidance says contributions can come from parents, relatives, friends, employers, state governments, philanthropic organizations and individuals, subject to applicable annual limits.
Treasury said the full Trump Accounts app launched on July 4, allowing families to view account balances, track contributions and investment performance, set recurring contributions, link bank accounts and access financial education modules focused on saving, investing, compound growth, diversification and capital markets. Children will be able to track their investments as they grow, according to Treasury.
Corporate and philanthropic support has become a major part of the rollout. Participating companies include Visa, Dell and Comcast, while Micron has pledged $250 million to support Trump Accounts. The White House said more than 50 companies have committed to contributions for employees’ children.
The highest-profile private contribution so far has come from Michael and Susan Dell, who appeared at the White House event and have pledged $6.25 billion for the accounts, according to the Associated Press. Investor Ray Dalio and SpaceX President Gwynne Shotwell are among other billionaires and executives supporting the accounts.
Treasury also announced last week that it would accept large philanthropic contributions of readily tradable public company stock to support Trump Accounts. Under that process, eligible philanthropic contributors may transfer approved publicly traded stock to Treasury, which would then contribute the stock to Trump Accounts for eligible children consistent with the donor’s instructions and applicable law.
Account holders take control at age 18. Reuters reported that they may withdraw funds or continue investing, with gains taxed upon withdrawal. Federal Register guidance describes the account as a type of traditional IRA established for the exclusive benefit of the eligible child, with special rules during the growth period before age 18.
The program comes as the administration is tying more of its economic message to stock ownership. The president used the Oval Office bell-ringing to emphasize market gains, saying after the launch that “the market’s going to go through the roof.” Mr. Trump is promoting the accounts at a time when inflation and the cost of living remain major political issues ahead of the midterm elections.
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