The US government is launching the "Trump Account" program, a long-term asset-building initiative that provides direct investment seed money to American children, marking one of President Donald Trump's signature economic pledges.
According to the US Treasury Department and Yonhap News on Tuesday, the Treasury announced in an official press release that it had released a mobile application for opening Trump Accounts on the Apple App Store and Google Play Store. The government plans to begin actual account openings and disbursement of subsidies on July 4.
Trump Accounts are tax-advantaged investment accounts opened in the names of American children. The federal government will provide $1,000 (approximately 1.5 million won) as initial funding to newborns born between January 1, 2025, and December 31, 2028.
The program was introduced as part of the "One Big Beautiful Bill," a tax and spending bill passed by Republicans last year. President Trump previously introduced the program in his State of the Union address, saying he would "ensure all American children can share in the benefits of economic growth."
The accounts are designed to invest in equity index funds and similar instruments. Eligibility is limited to children who hold US citizenship and a Social Security Number (SSN).
Parents can apply for accounts in their children's names by submitting Internal Revenue Service (IRS) forms, and government subsidies will be automatically deposited after account opening. Until the child turns 18, parents will manage the account as legal custodians.
In addition to government subsidies, family members or guardians can contribute up to $5,000 annually. Companies can also contribute up to $2,500 per year to accounts of their employees' children, and this amount is not included in the employees' taxable income.
The US government is also emphasizing the long-term investment effects. The White House Council of Economic Advisers (CEA) estimated that, based on the average return rate of the US stock market, a child born in 2026 receiving the maximum annual contribution could accumulate approximately $300,000 (about 450 million won) in assets by age 18 and over $1 million (about 1.5 billion won) by age 28.
Even without additional contributions, maintaining only the government subsidy could grow assets to approximately $5,800 (about 8.7 million won) by age 18 and around $18,100 (about 27.15 million won) by age 28, according to the projection.
US Treasury Secretary Scott Bessent explained, "The goal is to help young Americans participate in investment and asset-building processes from an earlier age."
Private donations are also flowing in to support children born outside President Trump's second term (January 2025 to January 2029). Dell Technologies founder Michael Dell and his wife have pledged to donate $6.25 billion (about 9.4 trillion won) to provide $250 each to 25 million children aged 10 and under who were born before 2024.
Kevin Hassett, director of the White House National Economic Council (NEC), said, "Trump Accounts are designed to allow children from low-income families to experience the power of compound interest and long-term investing."
