The Dubious Rags to Riches Promise of Trump Accounts - FactCheck.org

What the report says

FactCheck.org examined President Donald Trump’s promotion of “Trump accounts,” new federal child investment and savings accounts created under the One Big Beautiful Bill Act, which Trump signed on July 4, 2025. Trump has said the accounts could reach “hundreds of thousands of dollars” by the time children become adults and has framed them as a path for children from households with little money to become wealthy by age 18.

According to FactCheck.org, that outcome depends on large, sustained contributions and favorable market returns. The program allows parents, relatives, employers, charities, governments and others to contribute up to a combined $5,000 per year per account until the child turns 18. The federal government provides $1,000 in seed funding for children born from Jan. 1, 2025, through Dec. 31, 2028, with a valid Social Security number. Children under 10 in eligible ZIP codes also may receive $250 funded by a donation from Michael and Susan Dell.

FactCheck.org reported that the accounts will initially be invested in a State Street S&P 500 exchange-traded fund and grow tax-deferred. White House Council of Economic Advisers projections cited by the outlet show an account could exceed $300,000 by age 18 under a mid-range return assumption only if the maximum annual contribution is made. Without added contributions, the $1,000 federal deposit would grow to several thousand dollars, not hundreds of thousands.

The outlet said financial experts consider Trump’s broader “rags to riches” framing doubtful because many low-income families are unlikely to be able to contribute thousands of dollars each year. Still, experts noted that eligible families who decline the accounts could miss out on available seed money.