U.S. — First Lady Melania Trump announced an initiative in early June 2024 in conjunction with the U.S. Treasury Department. The initiative, called Trump Accounts, launched on July 4, 2024. These are tax-advantaged investment accounts designed for children.

Under the initiative, states can open Trump Accounts on behalf of eligible foster children, acting as legal guardians. Twenty-five governors have pledged to open these accounts for eligible foster children. Approximately 331,747 children were in foster care in 2025.

Parents, guardians, grandparents, and others can contribute up to $5,000 annually in after-tax dollars to a Trump Account. Contributions can be made until the year before the beneficiary turns 18. Businesses are allowed to contribute up to $2,500 per worker each year to a Trump Account, which is included within the $5,000 yearly contribution limit. Qualifying charitable organizations, along with state and local governments, can make contributions to Trump Accounts that do not count toward the annual cap. Babies born between 2025 and 2028 with a Trump Account will receive a $1,000 initial deposit from the Treasury Department.

The rules governing traditional individual retirement accounts also apply to Trump Accounts. Assets in these accounts generally cannot be accessed before age 18. Ordinary income tax rates apply to withdrawals unless the money was previously taxed upon contribution. A 10% early withdrawal penalty may be applied to funds removed from a Trump Account before the beneficiary reaches age 59½, unless an exception is met. Exceptions include expenses for higher education, up to $10,000 for a first home purchase, $5,000 for the birth or adoption of a child, $1,000 annually for personal emergencies, medical expenses that qualify for a tax deduction, and health insurance premiums during unemployment.

In 2025, approximately 15,000 individuals exited the foster care system as they aged out. In most states, individuals become legal adults at 18, though foster children typically have access to extended foster care until age 21. Daniel Hatcher, a law professor at the University of Baltimore School of Law, said, "Overall, I think there can be benefits to [these] accounts, but there also needs to be more flexibility so that foster youth have access to the funds at the critical time when they are transitioning out of care."

Arnie Eby, executive director of the National Foster Parent Association, stated, "We're very pleased that the emphasis on foster Kids … brings attention to the long-term needs of children and youth experiencing foster care." Eby added, "We're not 100% sure if the benefits [of Trump Accounts] will work out like they're intended to or hoped for." He also said, "I think, long-term, the flexibility is going to be something that needs to be worked out." Eby concluded, "We don't want the money to grow and then suddenly it's diminished because it's not used for an allowable reason." Separately, Michael Dell and Susan Dell pledged $6.25 billion to Trump Accounts. Under this pledge, children born between 2016 and 2024 could each receive $250 if they reside in a ZIP code with a median income of $150,000 or less.