'Trump accounts' for newborns will accept stock donations, US officials say

• Treasury Secretary Scott Bessent stated the stock donation feature creates 'a practical pathway for large-scale private giving' to support future generations
• Treasury announced five investment funds tracking major Wall Street indexes where account holders can invest; Trump himself holds $7-35.1 million in these same instruments
• Trump accounts offer less favorable tax treatment than other youth savings plans but have fewer usage restrictions, with funds untaxed until age 18 but potentially subject to state taxes

Summary

The U.S. Treasury Department announced that "Trump accounts" for newborns will accept donations of publicly traded stocks and cryptocurrencies, expanding funding options beyond cash contributions. The program officially launches Saturday, July 3, 2026, coinciding with America's 250th anniversary.

Key Program Details:

• Federal government provides $1,000 seed money for each child born between 2025-2028
• More than 6 million families enrolled, but only 1.4 million qualify for federal contributions
• The majority of participants will invest primarily their own funds while gaining tax advantages

Investment Options:

Treasury Secretary Scott Bessent announced five investment funds tracking major Wall Street indexes, comprising widely traded ETFs available to retail investors. Notably, President Trump holds $7-35.1 million in these same instruments, having purchased up to $21 million of these funds in 2025.

Tax Treatment:

Trump accounts offer less favorable tax treatment than traditional youth savings plans but provide greater flexibility on fund usage. Money remains untaxed until the account holder turns 18, though some state taxes may apply.

Market Implications:

The stock donation feature creates opportunities for large-scale philanthropic giving and corporate contributions, with Bessent describing it as "a practical pathway for large-scale private giving to support the next generation." The program's structure may drive increased retail investment in major index ETFs and create new channels for corporate charitable giving.

The initiative represents a novel approach to youth savings combining government seed funding, private donations, and market-based investments tied to major equity indexes.