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The “Trump Accounts,” a savings and investment program for those under 18 that includes an initial contribution of one thousand dollars from the United States government, came into effect on July 4th.
According to what President Trump said this week, more than 500,000 babies have already received an initial deposit of $1,000 from the Department of the Treasury in investment accounts in their name.
The initiative was born from the "One Big Beautiful Bill Act," signed by President Donald Trump in July 2025, and establishes investment accounts for minors technically known as IRS 530A accounts. The Treasury Department plans to extend the bond to 1.4 million children out of approximately six million accounts already registered.
Children born between January 1, 2025, and December 31, 2028, who are U.S. citizens with a valid Social Security number, are eligible to receive the $1,000.
However, any minor under 18 can open an account, although only those born during that period receive the government bonus.
The funds are invested exclusively in index funds or ETFs that track the S&P 500 index, which equates to owning a stake in the 500 largest companies in the United States.
Families can contribute up to an additional $5,000 per year, and grandparents, uncles, friends, or employers can also contribute, with employers able to allocate up to $2,500 annually as a tax-deductible employee benefit.
Why it particularly benefits the Hispanic community
Oscar Bonilla, Doctor of Economic Engineering and professor at Baruch College in New York, explained to Univision Miami that the program represents a historic opportunity for Hispanics, a group that has historically been distant from the stock market.
"Six out of ten Americans invest directly or indirectly in the stock market, but in the Hispanic community, less than 30% invest in the stock market. It's an incredible market that they are not participating in. And these accounts, especially for this community, our community, allow them to access this universe," the expert noted.
Bonilla also highlighted a cultural trait that the program can transform: "We are traditionally savers, but we are savers, not investors. We were taught to save money, to keep it under the mattress, to put it in a bank account and not touch it."
The program also has a key advantage for families with mixed immigration status: the child must be a U.S. citizen with a Social Security number, but the parents or guardians opening the account do not need to be.
The projections are significant: a family that saves $5,000 annually could accumulate between $130,000 and $150,000 by the time the youngest reaches 18 years old, with a conservative annual return of between 4% and 6%, far below the historical return of the S&P 500, which is around 10% annually.
How to open the account and contributions from the private sector
There are two ways to register: through the portal trumpaccounts.gov or by using IRS Form 4547 when filing your tax return.
The platform was developed by Robinhood and BNY Mellon, although funds can also be transferred to brokers like Charles Schwab, Fidelity, or JP Morgan Chase.
The private sector has contributed significantly.
The Dell Foundation announced a donation of 6.25 billion dollars to provide an additional 250 dollars to children under the age of 10 from families with annual incomes below 150,000 dollars. SpaceX also committed assets valued at 320 million dollars in stocks to benefit approximately two million children.
Bonilla estimates that the program could reach nearly 80 million beneficiaries over the years, and he described it as "a great opportunity for people of all political colors. It's simply an opportunity when the government gives you a thousand dollars just for being a citizen of the United States."
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