President Donald Trump says Trump Accounts could hoist children out of poverty and give more Americans the chance to benefit from investments in the stock market. But some parents say they’re still waiting for the money to arrive.
Trump on Wednesday plans to speak at a Georgia high school to promote the investment accounts, which offer $1,000 in seed money to every child born during his second term. The accounts went live July 4, two days before Trump rang the opening bells for both the New York Stock Exchange and NASDAQ from the Oval Office.
The tax-advantaged accounts, created last year through Trump’s signature One Big Beautiful Bill, can be opened for any child under the age of 18. The Treasury Department boasts 6.5 million sign-ups for Trump Accounts, with 1.5 million of those eligible for the $1,000 seed funding for babies born from 2025 through 2028.
Boosters of the program say it’s a chance to give more Americans a stake in the stock market. They hope it will stem the rising popularity of democratic socialists, who seek to raise taxes on corporations and the wealthy to ease the cost of things like food and healthcare for low-income and middle-class Americans.
After the Trump Accounts are set up, parents, relatives, friends and employers can contribute to them. Some billionaires have also pledged philanthropic contributions. The money is turned over to private firms that invest it in index funds, a type of mutual fund that tracks the performance of the stock market. The money can’t be accessed until the child turns 18, and only then for specific purposes, such as going to school, opening a business or buying a home.
For babies born since Trump took office last year, $1,000 from the U.S. Treasury is supposed to kick off the accounts. While some parents report receiving the money, others said in interviews and on social media they’re still waiting for the accounts to receive $1,000.
Masaki and Kristina McLellan, new parents from Bergen County, New Jersey, said in an interview they were wary of signing up for the accounts because they worried it was a promotional stunt for the president. But the $1,000 incentive persuaded the couple, whose daughter Maya was born in late March, to start an account anyway.
Masaki McLellan said he applied for the account July 6. At first, the application was rejected, but the account was activated after he spent an hour on the Trump Account hotline. He was told he’d see the money in the account in 10 days. Now, he says, he’s been told it will take up to four weeks.
Kristina McLellan said she was disappointed it was taking so long to fund her daughter’s account. But the infant has multiple other investments already compounding for her. Maya’s parents have already started a 529 college savings plan and a custodial brokerage account for her. The Trump Account is the third investment account in the little girl’s name.
“We definitely want to give her options for her future and make sure she can choose what she wants to do,” said McClellan, a studio director for a local news station, who returns from maternity leave next week.
The Treasury Department said the lag between opening an account and receiving the seed funding constitutes “standard processing time, like receiving a tax refund” and that the overwhelming majority of parents are only waiting one to two days. But the department likes to give parents a conservative estimate for how long it might take for the money to be transferred, such as the estimate of up to four weeks given to the McLellans.
“Trump Accounts level the playing field by allowing every parent to invest in their children’s future, not just wealthy families with trust funds,” the department said. “With roughly 1 million sign-ups per month before launch, Trump Accounts have become the most popular and successful government-backed savings product in U.S. history.”
Trump’s stop in Georgia comes as he and fellow Republicans face pressure in the midterm elections for their handling of the economy. Only 33% of U.S. adults approve of Trump’s economic leadership, among the lower ratings of his second term, according to a June survey by The Associated Press-NORC Center for Public Affairs Research. Trump pledged to lower costs, but his tariffs and the war in Iran have instead helped to increase prices.
Trump Accounts are similar to “ baby bonds,” championed by Democratic-led cities and states meant to shrink the wealth gap between low- and high-income children. But unlike most baby bonds, which generally target kids from disadvantaged backgrounds, Trump Accounts are available to families of all incomes.
The program has faced criticism from those who say it does nothing to help families in a child’s first years of life, when children are most likely to experience poverty, homelessness and hunger. And the bill that created the program, the president’s signature One Big Beautiful Bill, also slashed funding for programs that are disproportionately used by children, including Medicaid and the Supplemental Nutrition Assistance Program.
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Associated Press writer Adriana Morga contributed to this report.
President Donald Trump has introduced a program called Trump Accounts, which aims to provide a financial boost for children born during his second term. These accounts are designed to lift children out of poverty and encourage more Americans to invest in the stock market. Trump is promoting this initiative during a speech at a high school in Georgia, highlighting its potential benefits.
The accounts launched on July 4, coinciding with Trump’s ceremonial ringing of the opening bells for the New York Stock Exchange and NASDAQ from the Oval Office. Under the initiative, every child born during Trump’s second term will receive $1,000 in seed money from the U.S. Treasury. The program, established through Trump’s One Big Beautiful Bill last year, allows any child under 18 to have an account. The Treasury Department reports that approximately 6.5 million accounts have been established, with around 1.5 million children eligible for the initial funding.
Supporters of Trump Accounts argue that they provide an opportunity for broader participation in the stock market, potentially countering the appeal of democratic socialists who advocate for higher taxes on the wealthy to support low-income families. Once the accounts are created, parents, relatives, friends, and even employers can contribute additional funds. Notably, some billionaires have also committed to donating to these accounts. The funds will be invested by private firms in index funds and cannot be accessed until the child reaches 18, at which point the money can be used for education, starting a business, or purchasing a home.
However, the rollout of the program has faced some challenges. While some parents have successfully received the $1,000 seed funding, many others report delays in accessing their funds. For instance, Masaki and Kristina McLellan from Bergen County, New Jersey, became skeptical about the program but ultimately decided to open an account for their newborn daughter, Maya, after being enticed by the $1,000 incentive. Masaki initially faced a rejected application but eventually activated the account after contacting customer support. He was informed that the funds would be available in ten days, but later was told it could take up to four weeks.
Kristina expressed her disappointment with the lengthy process, noting that they had already set up other investment accounts for their daughter, including a 529 college savings plan and a custodial brokerage account. They are eager to provide Maya with various options for her future. The Treasury Department explained that the waiting period for funding is akin to the processing time for tax refunds, with most parents only waiting one to two days.
The department emphasized that Trump Accounts are intended to « level the playing field » by allowing parents from all economic backgrounds to invest in their children’s futures, contrasting this with wealthier families who rely on trust funds. The program has garnered significant interest, with a reported one million sign-ups monthly before its official launch.
Trump’s visit to Georgia comes amid mounting pressure on Republicans regarding their economic performance, particularly with only 33% of U.S. adults approving of Trump’s economic management, according to a June survey. Critics argue that the Trump Accounts initiative has limitations, as it primarily benefits families once their children reach adulthood, rather than addressing the immediate financial needs of families with young children, who often experience poverty and food insecurity.
Moreover, the legislative framework behind the program, the One Big Beautiful Bill, has faced scrutiny for cutting funding from essential programs like Medicaid and Supplemental Nutrition Assistance, which disproportionately support vulnerable children. This has led to discussions about the program’s effectiveness in genuinely alleviating the hardships faced by families during a child’s early years.
In summary, while Trump Accounts are positioned as a progressive financial tool to encourage investment and reduce poverty for future generations, they have sparked a range of opinions regarding their efficacy and the broader implications of the policies that support them.
