With an eye on the next generation, a new Trump Accounts proposal aims to turn tax season into more than a yearly chore – recasting it as a first step toward building lasting wealth.
Tucked inside President Donald Trump’s sweeping One Big Beautiful Bill, the plan would create government-backed investment accounts for children, designed to grow over time.
The accounts would function much like traditional long-term investment vehicles, but with rules tailored to protect young savers.
Available only to those under 18, they would be funded through federal seed money, private contributions from families and, in some cases, supplemental deposits from employers or nonprofit organizations.
TRUMP ACCOUNTS, EXPLAINED: WHO QUALIFIES, HOW THEY WORK AND WHEN YOU CAN CLAIM
To kick-start the nest egg, the federal government will deposit an initial $1,000 into each new account.
"If the government is going to give you $1,000, you should definitely take it," Bill Sweeney, AARP’s senior vice president of government affairs, told Fox News Digital.
"This is a great opportunity, from our perspective at AARP, for grandparents to help make sure that their grandkids are set on a good financial path and put a little bit of extra money away for their future," he added.
Sweeney said anyone can apply for the accounts for a child born between 2025 and 2028.
"It's a simple one-page form included with your tax return to open the account," he added.
MICHAEL AND SUSAN DELL DONATE $6.25B TO FUND TRUMP ACCOUNTS
Supporters say the accounts are designed to harness the power of long-term investing to build wealth early.
"One of the most important parts of wealth creation is what we in finance call compound interest," said Michael Faulkender, co-chair of the America First Policy Institute’s Center for American Prosperity.
"If you put money into an account and leave it untouched, that initial investment – and the interest it earns – can grow into a significant amount over time."
GET FOX BUSINESS ON THE GO BY CLICKING HERE
"Having an ownership stake in the economy is a more durable way to build wealth and become self-sufficient," Faulkender said.
"It allows families and their children to benefit directly from economic growth."
So far, more than 4 million Trump Accounts have been opened this tax season, according to the Treasury Department.