US Trump Accounts reach 6.5m sign-ups as seed cash faces delays
A US government program routing $1,000 index fund investments to millions of children has attracted 6.5 million sign-ups, though bureaucratic delays are stalling the promised seed capital.
The US Treasury has enrolled 6.5 million Americans in the newly launched Trump Accounts, a tax-advantaged program funneling government seed capital into private index funds. Of those sign-ups, 1.5 million accounts are eligible for a $1,000 federal contribution for children born between 2025 and 2028. The program went live on July 4, just before President Donald Trump rang the opening bells for the New York Stock Exchange and NASDAQ.
The accounts are managed by private firms and restricted to index fund investments, creating a new pipeline of retail capital into equities. Beyond the federal seed money, parents, relatives, employers and philanthropists can contribute to the funds, which lock capital until the child turns 18 for approved uses like education, home purchases or business formation. “With roughly 1 million sign-ups per month before launch, Trump Accounts have become the most popular and successful government-backed savings product in U.S. history,” the Treasury Department said.
However, the deployment of that federal seed money is facing operational friction. Some parents report waiting weeks for the $1,000 transfers to clear, despite the Treasury claiming the “overwhelming majority” of parents wait only one to two days. The department attributed the lag to standard processing, comparing it to a tax refund.
New parents Masaki and Kristina McLellan applied for their daughter’s account on July 6 but were initially rejected, requiring an hour-long call to a hotline to resolve the issue. After being told the funding would take 10 days, the New Jersey couple was later informed the wait could stretch to four weeks. “We definitely want to give her options for her future and make sure she can choose what she wants to do,” said Kristina McLellan.
The program’s universal eligibility distinguishes it from targeted “baby bonds” championed by Democratic states, but it arrives at a politically precarious moment. Trump is set to promote the accounts in Georgia on Wednesday as Republicans face midterm headwinds, with an AP-NORC survey showing only 33% of adults approve of his economic leadership amid tariff-driven inflation.
The accounts were created under the One Big Beautiful Bill, a package that simultaneously cut funding for Medicaid and the Supplemental Nutrition Assistance Program. Critics argue the long-term investment accounts do nothing to address immediate childhood poverty, raising questions about the program's longevity if the political winds shift.
