Treasury to auto-enroll up to 60 million children in Trump Accounts starting Oct. 1

The Treasury Department said it will automatically create Trump Accounts for up to 60 million eligible children in the United States, with auto-enrollment beginning on Oct. 1. The temporary regulations, published in the Federal Register, take effect Sept. 30 and replace the earlier requirement that parents or guardians sign up for the accounts on their children’s behalf.

The government expects the automatic enrollment to add about 2 million accounts per birth-year cohort and to increase the appeal for donors to contribute.

"Stakeholders have expressed that eligible donors prefer that their contributions reach all children, not just children whose parents have the awareness to opt in," the Treasury notice said.

Under the One Big Beautiful Bill, children born between Jan. 1, 2025, and Dec. 31, 2028, will be eligible for a $1,000 seed contribution from the government. Children born after that period may also open accounts, but will not receive the government’s initial contribution. Friends, relatives or employers can contribute up to $5,000 per year, and several high-net-worth donors have pledged large sums to support the program.

Before the rule change, parents had to submit IRS Form 4547 through a mobile app or other channels to open an account. The Treasury withdrew the earlier regulation, stating it did not allow for broad automatic enrollment.

"After considering public comments and further addressing the legal and operational issues associated with automatic enrollment, the Treasury Department and the IRS have identified an administrable structure that permits broad automatic enrollment while protecting return information," the new regulations read.

Public commenters supported using personal information from tax returns and other records to enroll eligible children, arguing that requiring a separate election would reduce participation among families with limited resources. The Treasury said the new process aims to ensure children do not miss out on contributions or investment growth because an adult failed to complete an enrollment form.