2026-04534Proposed RuleWallet

Newborns Get $1K Boost: Trump Account Pilot Launches

Published Date: 3/9/2026

Proposed Rule

Summary

Starting soon, kids born from 2025 to 2028 who are U.S. citizens with Social Security numbers can get $1,000 added to their new Trump accounts through a special pilot program. Parents or guardians will need to choose to make this happen by following new IRS rules. Comments on these rules are open until April 8, 2026, so get ready to act!

Analyzed Economic Effects

7 provisions identified: 5 benefits, 2 costs, 0 mixed.

One-time $1,000 deposit for eligible kids

If a parent or guardian makes the required election, an eligible child who is a U.S. citizen born in 2025, 2026, 2027, or 2028 and who has a Social Security number can receive a one-time $1,000 pilot program contribution deposited into that child's Trump account. The $1,000 payment is made only after an election is made and processed and only if the child has an established Trump account.

Early election window boosts growth

A pilot program election can be made as early as the day a child becomes eligible and as late as December 31 of the calendar year the child turns 17; only the first processed election for a child yields the $1,000 contribution. The IRS is using Form 4547 in 2026 and will allow electronic elections on IRS web pages or apps. Making the election earlier can increase investment growth — the Treasury/IRS estimated a median $300 difference in account value at age 18 between $1,000 invested at birth versus six months later.

Low-fee, indexed investment rules

Trump accounts must track the returns of a broad index of primarily U.S. equities, avoid leverage, and avoid annual fees and expenses above 0.1%. These investment and fee rules apply to Trump accounts during their operation.

Restricted access during growth period

Most distributions from a Trump account are not permitted during the growth period, which runs from account establishment until December 31 of the calendar year the account beneficiary attains age 17; in the calendar year the beneficiary turns 17 the entire balance may be rolled over via direct trustee-to-trustee transfer to a rollover Trump account or to an ABLE account.

Full $1,000 protected from offsets and limits

The $1,000 pilot program contribution paid to an eligible child's Trump account may not be reduced by mandatory Treasury Offset Program offsets, past-due support, debts to Federal agencies, state income tax obligations, unemployment compensation debts, levy, or other assessed Federal taxes; and pilot program contributions do not count toward the Trump account's $5,000 annual contribution limit (adjusted for inflation).

No Trump account, no $1,000 payment

An eligible child will not receive the $1,000 pilot program contribution unless the child has an established Trump account; if no Trump account exists or the Trump account ceased to exist (for example due to the child's death), the Secretary is not authorized to remit the $1,000 to any other recipient.

Annual limit and government/nonprofit exception

In general, Trump account contributions are subject to an annual limit of $5,000 (adjusted for inflation), but contributions from governments and nonprofits—made through the Treasury—do not count toward that $5,000 annual limit and must be made in equal amounts to every beneficiary in a qualified class.

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Key Dates

Effective Date
Published Date
Comments Due
1/1/2026
3/9/2026
4/8/2026

Department and Agencies

Department
Independent Agency
Agency
Treasury Department
Internal Revenue Service
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