U.S. Treasury Secretary Scott Bessent and First Lady Melania Trump rolled out a new policy on June 11 to expand access to Trump Accounts for eligible youth in foster care nationwide.
The effort falls under the First Lady’s “Fostering the Future” platform and is intended to broaden financial literacy education while opening pathways to wealth-building for children in the foster system, the Treasury Department announced.
Trump accounts are investment accounts for children aged 17 and under. Children born in the U.S. between January 1, 2025, and December 31, 2028, are eligible to receive $1,000 from the U.S. Treasury to seed their accounts.
Within the foster care community, the accounts may be referenced as “Fostering the Future Accounts.”
“Fostering the Future is the latest expression of the First Lady’s longstanding commitment to America’s children. We at Treasury are grateful for Mrs. Trump’s leadership in advancing Trump Accounts, the most important benefit for young people since the GI Bill,” Bessent said. “This initiative will expand access to Trump Accounts for youth in foster care and provide states with new flexibility to direct existing resources toward their future, helping more young people build savings and a stronger foundation for long-term financial security and success.”
“Fostering the Future Accounts give foster children the same chance for asset ownership and long-term wealth building as every other American child. By investing in our foster youth now, we help strengthen America’s workforce, communities, and economic future,” the First Lady said.
How States Can Open Accounts
Under the policy, a state, territorial, or tribal child welfare agency serving as legal guardian of an eligible child with a Social Security Number may elect to open an initial Trump Account if the child does not already have one. Agencies must follow state-specific procedures to complete, sign, and submit Form 4547 to formally establish an account.
The Internal Revenue Service Office of Governmental Liaison will work with each state to provide guidance on the process. Agencies may coordinate with their assigned liaison or reach the IRS Governmental Liaison at [email protected].
States are encouraged to adopt policies that authorize child welfare agencies or their designees to act on behalf of children in their care to establish and manage the accounts. The Treasury Department also urged states to proactively open accounts for eligible youth who do not already have one.
Federal Survivor Benefits
The initiative additionally allows states the flexibility to deposit federal survivor benefits into Trump Accounts. Those deposits count toward the annual contribution cap of $5,000 per account and are meant to preserve resources for the child’s future needs, including education, housing, and career development.
Treasury officials said the policy is designed to break cycles of financial instability among youth in foster care by combining early access to savings with financial education.
