This provision creates a pilot program for TRUMP Accounts for newborns as a way to kick-start the program.

Applicable to U.S. citizens born between January 1, 2025, and December 31, 2028, the federal government will contribute $1,000 per child into every eligible Trump Account. The way this will be implemented is that the eligible child will be treated as making the payment against income tax for the tax year in which the election is made, thus creating a credit to be deposited into their Trump Account.

For newborns, Trump Accounts may be opened by parents or guardians. To be eligible to open an account and receive the $1,000 contribution the child must be a U.S. citizen and have a Social Security number.

A taxpayer who makes the election for the one-time payment for a child who is not the taxpayer’s eligible child, is subject to a penalty of $500 if the election is due to negligence or disregard of the rules or regulations, and $1,000 if the election was made fraudulently.

If the Secretary of Treasury determines that an eligible individual does not have an account opened for them by the first tax return where the child is claimed as a qualifying child, the Secretary shall establish an account on the child’s behalf, taking into account, to the extent possible, the parents’ preferred custodian and investment fund.

Parents will be provided the option to opt out of the account.