Treasury to Automatically Enroll Children in 'Trump Accounts'

The U.S. Treasury Department will soon begin automatically enrolling children in "Trump accounts," a change designed to dramatically expand participation. This new regulation allows children to be enrolled without parents needing to actively submit an application, potentially increasing the number of accounts tenfold.

Previously, parents had to complete an IRS form to open these tax-advantaged investment accounts. The temporary regulations, issued Tuesday, permit automatic enrollment for any child meeting eligibility criteria who does not already have an account. The Treasury anticipates this will add over 60 million children to the program in 2026 alone.

Despite the accounts' potential, enrollment has been low, with only about 7 to 8 million of the 73 million eligible children signed up. Participation has lagged particularly among low- and moderate-income families. The accounts, formally known as 530A accounts, were authorized by the One Big Beautiful Bill Act in 2025.

"Trump accounts" allow for deposits up to $5,000 annually per child until age 18. The program has also faced scrutiny, including comments from Treasury Secretary Scott Bessent that initially suggested the accounts could privatize Social Security, which he later walked back. Experts note that while automatic enrollment is a significant step, parents will still need to claim accounts to gain full control, raising questions about the effectiveness of the notification and claiming process.