Social Security Administration to allow newborn enrollment in Trump savings accounts at birth

The Social Security Administration announced on Friday that parents will be able to enroll newborns in the Trump savings program while the babies are still in the hospital. The new step will be added to the existing birth registration process that assigns Social Security numbers, which the agency says will expand the program’s reach to roughly 3.6 million infants born each year in the United States.

The accounts, which can be opened for children under 18 who have a Social Security number, will be funded with contributions from individuals, employers and other sources and will be invested in low-cost index funds. Money in the accounts will grow tax-free and will convert to an individual retirement account when the child turns 18, at which point withdrawals are allowed for qualified expenses such as education, home purchase or retirement.

"Social Security numbers are the backbone of Trump accounts, and we will empower parents to enroll their newborns," said Frank J. Bisignano, commissioner of the Social Security Administration.

The Treasury Department plans a one-time $1,000 deposit for each child born between Jan. 1, 2025, and Dec. 31, 2028, provided the child is a citizen and holds a valid Social Security number. Private contributors, including tech entrepreneur Michael Dell and chip maker Micron, have also pledged to make contributions to some accounts.

The agency will issue updated guidance to hospitals next week and will work with states to modify birth-registration forms to include the automatic creation of a Trump account. It was not immediately clear how the additional administrative costs will be covered, and spokespersons for the Social Security Administration and the White House were not reachable for comment.