Trump Accounts: Treasury moves to automatically enroll millions of children

WASHINGTON - The Treasury Department and the IRS are moving to automatically establish Trump Accounts for millions of eligible children, significantly expanding an investment program created under legislation signed by President Donald Trump.

Temporary regulations issued by Treasury and the IRS establish a system that allows the Treasury secretary to open an account for an eligible child without requiring a parent or authorized guardian to opt in first. 

Officials said the new rules aim to broaden overall participation while safeguarding sensitive taxpayer information.

The department estimates the regulations will affect roughly 73 million children across 44 million families, potentially creating more than 60 million new accounts in 2026.

Under the framework, Treasury will create individual accounts using authorized government records. 

Investments for automatically generated accounts will be pooled through a master group trust, though separate financial records will be maintained for each child.

Treasury emphasized that automatic account creation is separate from the federal government's $1,000 contribution. 

Auto-enrollment does not automatically qualify a child for the federal payment.

The $1,000 pilot contribution applies to eligible children born between 2025 and 2028, but an authorized person must still make a separate election to receive the government funds.

Parents and guardians must also claim an automatically created account before it can accept private contributions from family members or employers. 

To claim an account, individuals must verify their identity, prove legal authority to act on the child's behalf, and submit required information to Treasury.

Unclaimed accounts can receive certain qualified general contributions, such as those funded by government or nonprofit programs. 

Once claimed, accounts can accept standard private contributions, including family and employer deposits.

Trump Accounts were established under tax legislation signed in July 2025 as a new form of individual retirement account for eligible children. 

The updated regulations also permit governments and nonprofits to make large-scale contributions, including donations of publicly traded stock.

Treasury noted that the automatic enrollment system was designed following public feedback warning that mandatory opt-in requirements would lower participation, particularly among non-filers and low-income households unfamiliar with tax procedures.