Treasury Announces Access to Trump Accounts for Foster Children

Treasury Secretary Scott Bessent and First Lady Melania Trump unveiled a new policy initiative designed to “strengthen financial security and opportunity for young Americans in foster care”. According to the press release, a child welfare agency of a state, territorial, or tribal government that is the legal guardian of an eligible child who has a Social Security number and does not already have an account may elect to open an initial Trump Account for that child. To establish an account, agencies must follow state-specific procedures to complete, sign, and submit Form 4547, Trump Account Election(s), which serves as the formal election to create an initial account. 

States are strongly 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. In addition, states are urged to proactively open Trump Accounts for eligible youth who do not already have one, ensuring broad and equitable access to this opportunity. The initiative also provides flexibility for states to deposit federal survivor benefits into Trump Accounts. These contributions count toward the annual contribution limit of $5,000 per account and are intended to help preserve financial resources for the child’s future needs, including education, housing, and career development.