IRS Issues New Guidance on 'Trump Accounts': How Eligible Children Can Receive a $1,000 Government Deposit

A new savings initiative designed to give American children a financial head start is moving closer to reality. The Internal Revenue Service (IRS) and the US Treasury Department have released updated guidance explaining how families can enrol their children in so-called 'Trump Accounts', a programme that includes a one-time $1,000 government contribution for eligible newborns.

The announcement marks a key step toward the programme's official launch, expected around July 4, 2026. The initiative was created under the One Big Beautiful Bill Act, passed in 2025, and aims to encourage early savings and long-term financial security for the next generation. While the promise of a government-funded contribution has drawn attention, officials stress that parents must take specific steps to ensure their child qualifies.

A $1,000 Start for Eligible Newborns

Under the new program, children born between January 1, 2025, and December 31, 2028, may be eligible to receive a one-time $1,000 deposit from the US Treasury. The contribution is part of a pilot initiative intended to encourage families to begin investing for their children's future from the moment they are born.

However, the funds are not automatically granted. Parents or another authorised individual must formally enrol the child in the programme by opening a Trump Account. IRS officials say the newly released rules are intended to make that process clearer for families and financial institutions. Speaking about the rollout, IRS chief executive Frank J. Bisignano said the agency is working to ensure that eligible families understand how to participate in the initiative. 'The IRS is developing the guidance needed to ensure that eligible families can take advantage of Trump Accounts,' he said.

The One-Page Form Families Must File

To open the account, parents or authorised guardians must submit Form 4547, a one-page document designed specifically for the programme. The form can be filed in two ways:

• Alongside a federal tax return, or
• Through the IRS website

Families must submit the form by December 31 of the year the child turns 17. Missing that deadline means the child will not be able to participate in the programme. The same form can also be used to request the $1,000 government pilot contribution when the account is first opened. The IRS has already made English and Spanish versions of Form 4547 available online to help families prepare ahead of the programme's launch.

Who Manages the Account?

The person who opens the account becomes what the IRS calls the 'responsible party'. This individual controls the account and makes investment decisions until the child reaches adulthood. In most cases, the responsible party will be a parent or legal guardian. However, the IRS allows other family members to step in if necessary. The recommended order of priority includes:

1. Legal guardian
2. Parent
3. Adult sibling
4. Grandparent

Officials say this flexibility is meant to ensure children can still benefit from the programme even if their parents are unable to complete the process.

Eligibility Rules Families Must Know

For a child to qualify for a Trump Account and the government contribution, several conditions must be met. According to the IRS, the child must:

• Be born in 2025, 2026, 2027, or 2028
• Be a United States citizen
• Have a valid Social Security number
• Be enrolled in the pilot programme before any other account is opened on their behalf

Once the account is established and eligibility confirmed, the Treasury Department will deposit the $1,000 pilot contribution into the child's account.

A Programme Aimed at Long-Term Savings

Supporters of the initiative argue that even a relatively small contribution at birth could encourage families to begin saving earlier and allow investments to grow over time. Whether the programme ultimately reshapes how Americans save for their children remains to be seen. For now, the IRS guidance provides the clearest roadmap yet for families hoping to participate once the programme launches.

For parents welcoming a child between 2025 and 2028, the opportunity may come down to a simple step: filing a one-page form before the deadline.