Treasury advances rules to bar ESG funds from Trump Accounts

The Treasury Department said on Thursday it will adopt new investment rules for the recently launched Trump Accounts that exclude funds using environmental, social and governance (ESG) criteria. The proposed framework requires eligible indexes to be designed primarily to track the performance of a broad segment of U.S. or global equity markets based on objective financial measures, with an emphasis on low fees, diversification and long-term returns.

Treasury Secretary Scott Bessent told FOX Business that the accounts are intended to build financial security for children rather than promote political or ideological agendas. > "Corporate America has rejected ESG ideology, and we will not allow it to be a part of Trump Accounts," he said.

The accounts, which became available on July 4, have attracted more than 7 million families, according to a Treasury spokeswoman. Over 2 million of those participants qualify for a $1,000 seed fund provided by the federal government for children born between 2025 and 2028 under the One Big Beautiful Bill Act. Contributions exceeding $1.5 billion have been reported from individuals and pilot programs, not counting philanthropic donations such as the $6.25 billion pledged by Michael and Susan Dell to fund $250 seed deposits for children under age 10.