Trump Accounts Explained: Who's Eligible for $1,000 Bonus, How to Sign Up and Avoid Scams as It Launches July 4th

President Donald Trump’s administration is set to launch the Trump Accounts program on Saturday, linking the 250th anniversary of the signing of the Declaration of Independence with an initiative aimed at promoting the long-term financial security of America’s children.

The accounts are expected to start accepting deposits on July 4, the same day the Treasury is expected to deposit the government-funded bonus.

What is the Trump account?

Trump Accounts, formally known as 530A accounts, are a new type of investment account for children established under Trump’s “Big Beautiful Act.”

The initiative introduces a new savings account that allows funds to be invested in the stock market for the benefit of the child. The money remains unavailable until the child turns 18 and can only be withdrawn for approved purposes, including higher education expenses, starting a business or putting a down payment on a home. Families can already register for the program through trumpaccounts.gov.

Once a parent or legal guardian opens an account, the US Treasury deposits $1,000 for eligible newborns. The accounts will be managed by private banks and brokerage firms, with investments limited to U.S. stock index funds that mirror the broader stock market and charge annual management fees of no more than 0.10%, the AP reports.

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Parents can contribute up to $2,500 each year in pre-tax income, similar to retirement savings. Additional contributions can also be made by employers, relatives, friends, local authorities and charities. Total annual contributions are limited to $5,000, although contributions from government entities and non-profit organizations are excluded from this limit.

Who is eligible for the $1000 bonus and how the accounts work

As the program begins, families with older children are also encouraged to open Trump Accounts, although they will not be eligible for the $1,000 government grant. The one-time payment is only available to children born during the current Trump administration’s term.

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To receive the $1,000 government down payment, a child must be a U.S. citizen, have a valid Social Security number, and be born between January 1, 2025 and December 31, 2028. An eligible child account can be opened by either parent, regardless of immigration status.

The funds are intended as a long-term investment and generally cannot be accessed until the child reaches the age of 18, except in limited circumstances. As a result, the accounts are not designed to meet immediate financial needs. Any money withdrawn from the accounts will also be subject to applicable taxes.

Trump Account form

Parents and guardians can now open Trump Accounts by submitting IRS Form 4547 along with their tax return or registering through TrumpAccounts.gov.

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After creating an account, families are encouraged to download the Trump Accounts mobile app to activate it and track contributions, balances and other account activity over time.

How can families be aware of scams?

The US Treasury has announced that all official communications regarding the Trump accounts will be sent via email from no-reply@trumpaccounts.treasury.gov. “If you receive a call or text about the Trump account, do not answer, it is likely a scam,” the department warned.

The Treasury Department also recommends that families access their child’s Trump account only through the official Trump Accounts app or by typing TrumpAccounts.gov directly into their web browser to avoid fraudulent websites.