Melania Trump announces foster-care version of Trump Accounts
The Treasury guidance lets child welfare agencies open federal investment accounts for eligible children in foster care.
By Daniel Okafor · Business Editor
3 min read
First lady Melania Trump and Treasury Secretary Scott Bessent announced a foster-care expansion of Trump Accounts on Thursday, saying federal guidance will allow child welfare agencies to open investment accounts for eligible children in their care. The program matters because foster children often lack a parent or guardian able to complete the paperwork for the newborn savings accounts created under President Donald Trump’s tax and spending law.
The new effort, called Fostering the Future Accounts, builds on the Trump Accounts program, according to the Associated Press. That program provides $1,000 from the Treasury Department for qualifying children when an account is opened, with the money invested in the stock market by private firms and available when the child turns 18.
Speaking at the Treasury Department, Melania Trump said the guidance gives foster children “the same chance at asset ownership and long-term wealth as every other child.” She said 23 governors, all Republicans, had committed to letting state agencies start enrolling children in the program.
Trump also called on governors and business leaders to help add money to the accounts, according to the Associated Press. The accounts are scheduled to begin accepting contributions on July 4.
Who qualifies
To be eligible, a child must be a U.S. citizen born from Jan. 1, 2025, through Dec. 31, 2028, according to the Associated Press. The broader Trump Accounts program was created in the tax and spending legislation that President Trump signed last summer.
The White House Council of Economic Advisers estimates that an account for a baby born in 2026 would grow to $5,800 by age 18 and $18,100 by age 28 if no additional money is added, according to the Associated Press.
The foster-care version addresses a practical barrier in the original design. Under the guidance described by the first lady, child welfare agencies can serve as the guardian for children in foster care for the limited purpose of opening an account.
Foster-care outcomes cited
The National Council for Adoption says about 330,000 children are in the U.S. foster care system, according to the Associated Press. The National Foster Youth Institute says one in five foster children faces the risk of homelessness after leaving care, and about half are employed by age 24.
Bessent referred to those outcomes at the Treasury event and said the administration did not view them as unavoidable. He said the program was meant to affirm that “the American dream belongs to every child.”
Private donors and employers have also pledged money tied to Trump Accounts, according to the Associated Press. Michael and Susan Dell announced a $6.25 billion donation, while hedge fund founder Ray Dalio and his wife, Barbara, pledged $75 million for children under 10 in Connecticut, where they live.
No Democratic governors were named among the 23 governors the first lady said had pledged support for enrolling foster children through state agencies. The Associated Press reported that all 23 were Republicans.
This story draws on original reporting from Fortune.