Bill Sweeney, AARP’s senior vice president for government affairs, is urging eligible families to consider opening the new “Trump Accounts,” a savings program aimed at helping children build wealth early.
With the next generation in mind, a new proposal from Trump Accounts aims to make tax season more than an annual chore — reframing it as a first step toward building lasting wealth.
The plan, hidden in President Donald Trump’s sweeping One Big Beautiful Bill Act, would have government support investment accounts for children, designed to grow over time.
The accounts would function much like traditional long-term investment vehicles, but with rules tailored to protect young savers.
They are available only to people under 18 and would be funded through federal seed money, private contributions from families and, in some cases, additional contributions from employers or nonprofits.
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Trump Accounts are hidden in President Donald Trump’s sweeping One Big Beautiful Bill Act. (Tim Clayton/Corbis/Getty Images)
To get the nest egg started, the federal government will initially deposit $1,000 into each new account.
“This is, from our perspective at AARP, a great opportunity for grandparents to ensure their grandchildren are on a good financial path and put a little extra money aside for their future,” he added.
Sweeney said anyone can apply for the accounts for a child born between 2025 and 2028.
“It is a simple one-page form that is attached to your tax return to open the account,” he added.
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A blank 1040 tax return form from the IRS. (iStock)
Proponents say the accounts are designed to harness the power of long-term investing to build wealth early.
“One of the most important parts of wealth creation is what we in finance call compound interest,” said Michael Faulkender, co-chair of the Center for American Prosperity at the America First Policy Institute.
“If you put money in an account and leave it untouched, that initial investment – and the interest it earns – can grow to a significant sum over time.”
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Anyone can start a Trump Account for a child born between 2025 and 2028. (Getty Images)
“Having an ownership stake in the economy is a more sustainable way to build wealth and become self-sufficient,” Faulkender said.
“It allows families and their children to benefit directly from economic growth.”
More than 4 million Trump Accounts have been opened so far this tax season, according to the Treasury Department.
