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Trump Accounts to auto-enroll children
CNBC • • business
Key Points:
- The U.S. Treasury will begin auto-enrolling millions of children into Trump Accounts starting Oct. 1, potentially increasing enrollment by over 60 million in 2026 and by about two million annually thereafter.
- Trump Accounts, launched on July 4, provide a one-time $1,000 deposit for children born between 2025 and 2028, but prior enrollment required families to opt-in, resulting in low participation, especially among low-income families.
- Auto-enrollment aims to simplify access and improve participation rates, particularly benefiting lower-income families who have faced barriers to enrollment and currently represent only 5% of account holders.
- Coordination between the Social Security Administration and IRS, both led by Frank Bisignano, is expected to facilitate the auto-enrollment process, though concerns remain about the IRS's capacity amid recent staffing and funding cuts.
- The Treasury recently appointed Joseph Velli as senior adviser to support the Trump Account expansion, signaling increased focus and resources for the program's rollout.
