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Treasury proposes rules for eligible investments

CNBC • August 20, 2026 • business

Key Points:

The U.S. Treasury Department issued proposed guidance for eligible investments in Trump Accounts, tax-deferred savings accounts designed to encourage long-term investing for children.
Eligible investments must track broad U.S. or global equity markets, have low expense ratios, and meet objective financial criteria to maximize compound growth and minimize fees.
Current default investments include ETFs tracking the S&P 500, with options such as State Street SPDR Portfolio S&P 500 ETF, iShares Core S&P 500 ETF, and Vanguard Total Stock Market ETF.
Bank of New York Mellon manages Trump Accounts, and families can monitor account activity via an app developed with Robinhood to facilitate easy access and engagement.
Treasury and IRS officials emphasized that low-cost, straightforward index investing will help children retain more returns over decades, supporting their financial futures.

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