The White House released new details on Wednesday about the rollout of so-called “Trump accounts,” including confirmation of an additional private donation from hedge fund billionaire Ray Dalio and his wife, Barbara, aimed at supporting long-term savings for children.

The announcement follows a wave of corporate participation. Over the past week, several major financial institutions, including BNY and BlackRock, said they would match employee contributions to Trump accounts as a way to promote early wealth accumulation among American families.

Officially known as Section 530A accounts, Trump accounts were established under legislation championed by President Donald Trump and passed by Congress in July. According to updated information published this week, families will be able to begin using the accounts starting in mid-2026. Earlier this month, the Treasury Department and the Internal Revenue Service also issued additional guidance clarifying how the accounts will operate.

Private funding and the “50-state challenge”

Ahead of a White House press briefing, the Treasury Department highlighted new philanthropic support on the official Trump accounts website. Ray and Barbara Dalio were listed alongside Michael Dell, the founder and CEO of Dell Technologies, and his wife, Susan, as major contributors.

Treasury Secretary Scott Bessent described Dalio’s participation as part of what the administration is calling the “50-state challenge,” an initiative designed to expand the program’s reach nationwide.

Under the Dalios’ commitment, roughly 300,000 children in Connecticut are expected to receive $250 each. Eligibility is based on residence in ZIP codes where the median household income falls below $150,000. Census data analysis indicates that approximately 87 percent of ZIP codes in Connecticut meet that threshold.

Earlier this month, the initiative received a substantial boost when Michael and Susan Dell announced a $6.25 billion pledge to support children’s savings accounts, with a particular focus on families with lower incomes.

Advocates say programs like Trump accounts could help narrow long-standing wealth disparities in the United States. A 2020 Morningstar study on similar concepts, often referred to as “baby bonds,” suggested that government-seeded investment accounts introduced at birth could play a role in reducing racial and economic wealth gaps. Versions of these programs have already been tested by several states and municipalities.

At present, participation in existing savings vehicles for children remains limited. Fewer than one in four parents currently hold a 529 college savings plan for their child, according to a July survey conducted by Credit Karma. The survey also found that more than 40 percent of parents had never heard of 529 plans at all.

Opening a Trump account

Trump accounts can be opened by any legal guardian, including parents, grandparents, or adult siblings, on behalf of a child who is 18 or younger and a U.S. citizen.

To establish an account, the guardian must submit IRS Form 4547, either as a standalone filing or together with a 2025 tax return. Beginning in mid-2026, accounts will also be available for online registration through the official Trump accounts portal.

Children born between 2025 and 2028 will qualify for a one-time $1,000 contribution from the U.S. Treasury once their account is opened. This initial government deposit does not carry any income restrictions and is available to all eligible families.

For children aged 10 or younger who were born before January 1, 2025 and therefore do not qualify for the Treasury’s $1,000 seed money, additional support may still be available. Those living in ZIP codes with median incomes of $150,000 or less may receive a $250 deposit funded through the Dell family grant.

Based on Census Bureau data, only about 3 percent of U.S. ZIP codes exceed the $150,000 median income level. With the inclusion of private and public funding, nonprofit advocacy group Invest America estimates that as many as 25 million children nationwide could ultimately benefit from Trump accounts.

Investment rules and limitations

Although the Trump accounts website includes a sample illustration showing hypothetical holdings such as fractional shares of Nvidia and Tesla, the program’s official guidelines emphasize that actual investments will be placed in diversified, low-cost index funds.

Compared with other tax-advantaged accounts, Trump accounts come with stricter investment rules. Assets are limited to broad U.S. equity index funds, including qualifying mutual funds and exchange-traded funds. Investments must track a “qualified index,” a term that has not yet been fully defined by regulators.

In addition, annual fees and expenses are capped at 0.1 percent, and the use of leverage or borrowed funds to amplify returns is prohibited. Early estimates based on Morningstar Direct data suggest that roughly 186 mutual funds and ETFs could meet these criteria, though final eligibility will depend on further Treasury clarification.

Potential long-term growth

Treasury officials have emphasized the long-term impact of early investing. Speaking at Wednesday’s press conference, Secretary Bessent said that compound growth from the government’s initial contribution alone could meaningfully improve financial outcomes for future generations.

The updated Trump accounts website provides growth projections under three scenarios: no additional family contributions beyond the government deposit, annual contributions of $250, and annual contributions of $5,000. Using historical S&P 500 average annual returns of slightly above 10 percent, the site estimates that a $1,000 deposit with no further contributions could grow to approximately $5,800 over 18 years, not accounting for inflation.

Financial experts caution that such projections, while plausible, are not guaranteed. Debra Taylor, chief tax strategist at Carson Group, noted that full exposure to equity markets inevitably involves volatility.

Families considering Trump accounts, she said, should be prepared for fluctuations in account balances as markets rise and fall. Those uncomfortable with market risk may prefer a more conservative investment approach, even within the program’s limited options.