The Trump administration on Wednesday unveiled “Trump Accounts,” a provision of the new tax law that will hand out $1,000 to each newborn American citizen whose parents enroll them in the program.

No contribution is required, but parents can deposit up to $5,000 per year, which will be invested in American companies in the stock market

At the age of 18, without any additional contribution, it is calculated a account of the child it will be worth $5,800.

By age 55, a child’s account with no additional contributions will reach about $200,000.

President Donald Trump speaks during the Trump Accounts Launch Summit, Wednesday, in Washington, DC (Getty Images)

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With a $5,000 contribution each year, an account will be worth nearly $304,000 by the time the child turns 18, or $2.7 million by the time the child turns 55.

“For the first time, we will give every newborn American child a financial stake in the future,” the president said. donald trump he said Wednesday during an event announcing the program. “It starts life and a fair shot at the American dream, something that people have talked about so much … When you see what’s happening with our economy, the huge investments that (have) been made in our country.”

“Over the next 15 years, we will put $3 to $4 trillion in wealth into the hands of young Americans who would otherwise have started with nothing,” he added. “… Decades from now, I think the Trump accounts will be remembered as one of the most transformative policy innovations of all time.”

Treasury Secretary Scott Bessent, left, and musician Nicki Minaj laugh during President Donald Trump’s remarks during the Trump Accountability Summit Wednesday in Washington, DC (Win McNamee/Getty Images)

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All US children born between January 1, 2025 and December 31, 2028 will be eligible. Children can register when parents file their taxes.

The account will be in the child’s name and the parents will act as sole custodians until they turn 18.

The show will launch on July 5, a day after America’s 250th birthday.

Who is eligible?

All American children Anyone under the age of 18 with a valid Social Security number is eligible to set up a Trump account.

How much can be contributed to an account?

Families, friends and employers can do it contribute up to $5,000 annuallyper child, to a Trump account.

Where will the funds be invested?

The funds will be invested in “a diversified portfolio of low-cost index funds designed to maximize long-term growth while minimizing risk,” according to the Trump account site.

Specific stocks have not yet been released.

President Donald Trump arrives on stage before delivering remarks during the Treasury Department’s Trump Account Summit at Andrew W. Mellon Auditorium, Wednesday, in Washington, DC (Win McNamee/Getty Images)

When can the funds be used?

Funds can be withdrawn without penalty when a child turns 18 for qualifying expenses such as education, buying a first home or starting a business.

Withdrawals “may be subject to restrictions” and would be are taxed at ordinary rates of incomeaccording to the administration.

How to open an account

Parents can open a Trump account for eligible children using the newly created IRS Form 4547.

They can register when they file their taxes or through an online portal that will be available in the summer of 2026.

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Can corporations and philanthropists participate?

Employers can contribute up to $2,500 to Trump accounts for their workers or their workers’ children, which will be tax-deductible, or offer employees a salary reduction program that allows them to make pre-tax contributions to Trump accounts.

Nonprofits and local governments can also contribute to Trump accounts in a qualified state or geographic area.