Key Takeaways:
- The Treasury Department is launching a mobile app to manage the new child savings initiative.
- Eligible children receive $1,000 in federal seed money, with annual contribution caps of $5,000.
- Managed by Robinhood and BNY, the tax-deferred accounts open for active investing on July 4.
The Trump administration launches a new mobile app on Thursday for families managing Trump Accounts, Treasury Secretary Scott Bessent announced Wednesday, as the government expands its child savings initiative with federal contributions and investment tools.
Treasury officials said the app will be available on Apple and Google app stores and will allow parents to monitor balances, manage investments, and access financial literacy content before accounts officially open for investing on July 4.
Treasury Expands Rollout of Trump Accounts
Bessent announced the launch during a Cabinet meeting on Wednesday, saying nearly 6 million children already have Trump Accounts established.
“The app will be available on all major platforms tomorrow morning,” Bessent said, according to Treasury officials.
Trump Accounts are tax-deferred savings accounts modeled partly after individual retirement accounts. The program is designed to help families save for children’s future financial needs, though funds cannot be withdrawn until the child turns 18.
The Treasury Department selected Robinhood and the Bank of New York to manage the accounts during the program’s initial phase. The app allows parents and legal guardians to review balances and make investment decisions within approved options.
Investment choices will be limited to low-cost, broad-based U.S. stock index funds and exchange-traded funds, according to a Treasury spokesperson.
Families Receive Federal Seed Money
Under the program, the federal government contributes $1,000 to each eligible account opened for children born between Jan. 1, 2025, and Dec. 31, 2028.
Parents, relatives, employers, and friends may collectively contribute up to $5,000 annually into a child’s account.
Additional contributions may come from nonprofit groups, philanthropists, or state governments for children who qualify under designated groups, including residents of certain states or communities.
To qualify, children must be U.S. citizens, possess valid Social Security numbers, and remain under age 18 during the year the account is created.
Treasury officials said the government’s $1,000 deposits will begin July 4, though, because the holiday falls on a Saturday, some accounts may not reflect the funds until July 6.
App Includes Financial Literacy Tools Before Investments Begin
Before investment activity officially opens in July, the app offers eight financial literacy modules aimed at educating families about saving and investing.
A Treasury spokesperson told CNN the educational content is intended to help parents understand long-term investing principles before managing account funds.
Families may open accounts by filing Form 4547 with their taxes or by registering online through the government’s Trump Accounts portal.
Financial analysts say the program could encourage early savings habits among families, though some critics have questioned long-term costs and oversight responsibilities associated with federally backed contributions.
Robinhood did not immediately comment on Wednesday on projected user demand for the app following its launch.
The Treasury Department has not released projections for future enrollment totals beyond the nearly 6 million accounts already established.
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