Treasury moves to auto-enroll eligible children in Trump Accounts
Treasury says automatic account creation could add more than 60 million children in 2026, though families must still claim accounts and elect some deposits.
By Jordan Bell · Startups & Deals Reporter
· 3 min read
Treasury’s Trump Accounts auto enrollment plan could create accounts for more than 60 million additional children in 2026, according to agency guidance reported Sept. 29. For families, the key distinction is that an account being created does not automatically mean it has been claimed or funded with every available contribution.
The new rules authorize the Treasury secretary to create an initial Trump Account without requiring a parent or guardian to submit the enrollment form that the program had previously required, according to PLANADVISER. Treasury projects the change could add more than 60 million accounts this year, CNBC and InvestmentNews reported.
InvestmentNews reported that Treasury expected to begin creating accounts on or about Oct. 1 for children under 18 who have Social Security numbers and do not already have an account. PLANADVISER cited a more specific estimate of 63.36 million accounts.
What does Trump Accounts auto enrollment mean for parents?
Auto-enrollment means Treasury can establish an account in a child’s name. A parent, guardian or beneficiary still must authenticate with Treasury to claim it, according to PLANADVISER. InvestmentNews reported that a guardian would need to verify identity and legal authority through a Treasury app or webpage.
That step matters for families that want to add money. Contributions from parents, relatives and employers require a family to claim the account, InvestmentNews reported. The automatic-account process therefore expands the number of accounts Treasury can open, while leaving families with work to do before they can take control or arrange private deposits.
The same applies to the program’s $1,000 federal pilot payment. It is available for qualifying children born from 2025 through 2028, but Treasury cannot make that election for a family, according to InvestmentNews. A parent must file to receive the deposit. CNBC also reported that the accounts are tax-deferred investing accounts that may include the one-time Treasury contribution for children in those birth years.
How would automatically created accounts work?
Treasury would maintain records for each child’s account while pooling assets for investment in a master group trust, PLANADVISER reported. Individual ownership records would remain separate. InvestmentNews reported that Treasury would act on an account until a parent or guardian claims it.
The pooled structure is intended to allow collective investment while preserving separate account ownership. InvestmentNews reported that Treasury had previously identified legal and operational obstacles to broad automatic enrollment, including the need to avoid unauthorized disclosure of tax-return information.
The rollout comes after a slower opt-in start. Treasury Secretary Scott Bessent told the House Financial Services Committee on Sept. 15 that 7 million to 8 million children had enrolled, CNBC reported. Before auto-enrollment, families could sign up through IRS Form 4547 or TrumpAccounts.gov.
The regulatory status remains unclear in the available reporting. CNBC described the Sept. 29 issuance as temporary regulations, while PLANADVISER called them draft regulations and reported that public comments would be accepted through Nov. 30. The reports also do not establish what data Treasury or the IRS will use to identify every eligible child.
This story draws on original reporting from CNBC.
