Donald Trump rang the New York Stock Exchange (NYSE) opening bell from the White House to celebrate the first day of trading for the so-called Trump accounts, a government initiative that gives children a $1,000 investment account.

On Monday morning, July 6, the US president hosted the leadership of the NYSE and Nasdaq in the Oval Office. It was the first joint opening of the two exchanges — and the first time the bell had ever been rung from the White House.

Since July 4 — a date the Trump administration chose to coincide with the celebrations of 250 years of American independence — US families have been able to open the new «Trump accounts», investment accounts designed for minors. The program provides an initial $1,000 government deposit for millions of newborns who meet certain requirements.

The initiative was created under the law known as the One Big Beautiful Bill Act. On Monday, Trump himself touted the scope of the project, claiming that children born without a penny will be able to reach age 18 with a «substantial» nest egg. Not everyone shares the enthusiasm: several analysts point out that the biggest beneficiaries will be families already able to make additional contributions over the years, while those with fewer resources risk being left with the initial bonus alone.

What are Trump accounts?

Also known as 530A accounts, these are tax-advantaged investment vehicles reserved for children under 18. The money is automatically allocated to index funds tied to the US stock market and grows on a tax-deferred basis.

The stated goal is to let children build savings from their earliest years, so that once they come of age they have capital available for specific expenses such as college, a first home purchase, or starting a business. When the beneficiary turns 18, the account converts into a vehicle similar to a traditional IRA (individual retirement account), continuing to serve as a retirement nest egg as well.

Who qualifies for the $1,000 bonus?

The government contribution is not automatic for every child. To receive it, the child must meet three conditions: be born between January 1, 2025, and December 31, 2028, hold US citizenship, and have a valid taxpayer identification number.

Children who fall outside these parameters can still open a Trump account — they simply won’t receive the government deposit. According to statements made Monday by Treasury Secretary Scott Bessent, six million children have already been enrolled in the program, and 86% of them belong to households earning less than $200,000 a year. The parents’ immigration status is not an obstacle to opening an account, as long as the child meets the requirements.

How does it work?

Once activated, the account automatically invests the money in low-cost index funds tracking benchmarks such as the S&P 500; during this phase, investments are limited to instruments with low fees. Day-to-day management of the accounts has been entrusted, in this initial stage, to Bank of New York Mellon, and families can monitor balances and returns through the official app or the government portal.

Beyond parents, contributions can also come from guardians, grandparents, older siblings, employers, and other relatives.

How much can be contributed?

Excluding the initial government deposit, the annual cap is $5,000 per child, and within that limit employers can contribute up to $2,500 a year. Charities and state or local government entities can also make deposits, which in certain cases do not count toward the annual cap.

Several companies have already announced initiatives to top up children’s savings, including Dell Technologies, Bank of America, JPMorgan Chase, Micron Technology, Nvidia, Intel, IBM, and Uber.

When can the money be withdrawn?

Barring special circumstances, the funds remain locked until the beneficiary turns 18. From that point on, the money can stay invested or be used for specific purposes, such as continuing education, buying a first home, or starting a business.

An early withdrawal for purposes other than those allowed triggers — in line with the rules for traditional IRAs — the payment of the taxes due plus an additional 10% penalty, except for the exemptions provided by law.

Strengths and weaknesses of the program

The strong point most often cited by experts remains the free $1,000 in seed capital, which can grow significantly over time thanks to compound interest. But several financial advisors note that Trump accounts are no substitute for proven tools such as 529 education savings plans, which remain more tax-advantaged and more flexible on the investment side.

The sticking point raised by economists and think tanks remains: the program’s real effectiveness will depend above all on each family’s ability to keep contributing over the years. Higher-income families will be better positioned to make the most of the accounts’ growth potential, while low-income families risk benefiting only from the initial government deposit.

Editor’s note

This article was originally published in Italian on money.it by Flavia Provenzani on July 07, 2026 as «Arrivano i conti d’investimento di Trump. Bonus di $1.000 per milioni di bambini». It has been translated and adapted for an international audience by the Money.it International desk.