Children in foster care gain access to Trump accounts under first lady’s initiative

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Video above: President Trump touts “Trump accounts” at summit in January 2026.

(NEXSTAR) – In less than a month, Trump accounts – dedicated savings accounts for children – will formally launch. A new move announced by the Treasury Department and the first lady last week is expected to expand access to children in foster care.

Trump accounts, which are similar to retirement accounts, have to be established by the child’s parent or guardian. That could otherwise make it complicated for a child in foster care to have an account created for them.

On Thursday, first lady Melania Trump and Treasury Secretary Scott Bessent announced the launch of “Fostering the Future Accounts.” Trump, speaking at a news conference at the Treasury Department, said the move “gives foster children the same chance at asset ownership and long-term wealth as every other child.”

The initiative calls for state, territorial, and tribal child welfare agencies that are the legal guardians of an eligible child to open a Trump account for them. A child’s federal survivor benefits can also be deposited into Trump accounts by state officials under the initiative. The contributions do, however, count toward the annual contribution limit.

Twenty-three governors, all Republicans, have pledged to allow state agencies to begin the process of enrolling children in the program: Kay Ivey of Alabama, Sarah Huckabee Sanders of Arkansas, Ron DeSantis of Florida, Brian Kemp of Georgia, Brad Little of Idaho, Mike Braun of Indiana, Kim Reynolds of Iowa, Jeff Landry of Louisiana, Tate Reeves of Mississippi, Mike Kehoe of Missouri, Greg Gianforte of Montana, Jim Pillen of Nebraska, Joe Lombardo of Nevada, Kelly Ayotte of New Hampshire, Kelly Armstrong of North Dakota, Mike DeWine of Ohio, Kevin Stitt of Oklahoma, Henry McMaster of South Carolina, Larry Rhoden of South Dakota, Bill Lee of Tennessee, Greg Abbott of Texas, Spencer Cox of Utah, and Patrick Morrisey of West Virginia.

The process for state agencies to establish Trump accounts will vary slightly from that of parents and guardians, the Treasury Department explains, and the IRS’s Office of Governmental Liaison is prepared to assist.

As part of Thursday’s announcement, states are also being encouraged “to adopt policies that explicitly authorize child welfare agencies, or their designees, to act on behalf of children in their care in establishing and managing these accounts.”

“All 50 states should pledge to protect America’s foster youth,” Trump said in prepared remarks. “Let’s elevate America’s children above politics.”

There are roughly 330,000 children in the U.S. foster care system, according to the National Council for Adoption. One in 5 of them is at risk of homelessness after aging out of foster care, and only half gain employment by the time they are 24, the National Foster Youth Institute says.

Any U.S. child with a Social Security number who is under the age of 18 qualifies for a Trump account. If their Social Security card reads “Valid for Work Only with DHS Authorization,” the IRS says their Social Security number is considered “valid only as long as the DHS authorization is valid.”

The age of your child, and where you live, will impact whether or not they receive seed funds to kickstart their account.

Millions of children qualify for at least $250 in seed money to start their accounts.

The largest start-up money presently available is a one-time deposit of $1,000 from the Treasury Department. All children born between January 1, 2025, and December 21, 2028, qualify for this optional deposit.

Previously announced employer contributions from several companies are also available.

The Associated Press contributed to this report.

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