What to know about Trump Accounts and automatic enrollment

NEW YORK (AP) — Whether you realize it or not, your child may be enrolled in a “Trump Account.”

Rolled out earlier this year, the Trump Accounts program allows parents to claim special investment accounts for children who are 18 years old or younger. And some babies and newborns are eligible to receive a one-time $1,000 contribution from the government.

Now, due to automatic enrollment highlighted by President Donald Trump Wednesday, the Treasury Department says that every eligible child with a valid Social Security number has a Trump Account. But parents and legal guardians would still need to formally activate the accounts if they haven't already.

Here’s what you need to know about the accounts.

It’s a savings tool that invests money in the stock market on a child’s behalf. The child can’t access the money until they turn 18 and can use it only for specific purposes, such as paying tuition, starting a business or making a down payment on a home.

All Americans under age 18 are now being automatically enrolled in Trump Accounts. But parents and legal guardians still need to formally claim the accounts in order to activate them — by using the program’s website at trumpaccounts.gov or its mobile phone app.

Trump said Wednesday said that 70 million children will now be enrolled in the accounts, up from 8 million created since their launch in July.

For some babies and newborns, the U.S. Treasury Department will make a one-time, $1,000 “seed” contribution once an account is claimed. Other contributions will need to come out of pocket. Parents can contribute up to $2,500 annually in pretax income, much like they do for retirement accounts. But employers, relatives, friends, local governments and philanthropic groups can also pitch in. Yearly contributions are capped at $5,000, although contributions from governments and charities don’t count toward that total.

Private banks and brokerages will manage the money. When the accounts were originally conceived, investments were restricted to broader index funds. But because of updated rules from the Treasury Department late last month, eligible wealthy investors can now also donate stock from individual companies.

To qualify for the $1,000 seed money, a baby must be a U.S. citizen, have a Social Security number and be born between Jan. 1, 2025, and Dec. 31, 2028. Any parent can open an account for a qualifying child, regardless of the parent’s immigration status.

As part of the initiative’s launch, parents of older children also are encouraged to open accounts, but they won’t get the $1,000 bonus. That money is reserved for babies born during the calendar years of the current Trump administration.

Contributions from some of the country’s wealthiest investors still allow some older children to receive starting money in their Trump Accounts. The Dells, for example, separately committed $6.25 billion to give certain children born between 2016 and 2024 seed money of $250 if their parents open a Trump Account. That money is reserved for kids living in ZIP codes with a median family income of $150,000 or less — and deposits are expected to be made by Friday.

It’s important to note that the child won’t be able to access the money until they turn 18, except in rare circumstances. So the money can’t help with immediate expenses. And disbursements from the accounts will be subject to taxes.

Once a beneficiary of a Trump Account turns 18 years old, they can choose to use the money invested in whatever way they choose. However, Trump account beneficiaries can also choose to roll the investment over to a Roth IRA account.

“You’re extending the life of this thing beyond the 18 years; you’re going all the way out into the child’s potential retirement,” said Myranda Fabian, a certified financial planner with Plante Moran Financial Advisors.

Moving the earnings from a Trump Account to a Roth IRA account will be subject to taxation. Roth IRA accounts allow earnings to grow and to be withdrawn free of taxation when an adult reaches retirement age.

The 529 accounts are meant to invest for qualified educational expenses, such as college tuition, trade school, and student loans, among other expenses. There are several differences between these two accounts, such as 529 accounts grow tax-free, while investment earnings from Trump accounts will be taxed when withdrawn, and 529 account funds can be transferred to eligible family members.

Still, while 529s have stronger tax benefits, they're also specifically limited to spending on education — there's more options to park money from Trump Accounts after a child turns 18, such as starting a business or making a down payment on a home.

Fabian recommends parents focus on 529 accounts while also taking advantage of Trump Accounts as an addition to their children’s financial future.

Backers of Trump Accounts say they want to introduce more people to the stock market and give even children born into poverty a chance to benefit from it.

But critics say the accounts also fail to offset the cuts the Trump administration and congressional Republicans have made to other programs that benefit young people and the adults in their lives, including food assistance and Medicaid. And even with government contributions, some warn the Trump Accounts could widen the wealth gap.

Nathan C. Goldman, a professor of accounting at North Carolina State University, notes that at the end of the day, Trump Accounts are another option families can consider when making investments for their children, with solid tax advantages.

Still, affluent families will be more likely to afford the full scope of additional, out-of-pocket investments, Goldman said. A total contribution of $5,000 each year, for instance, would add up to $90,000 for one child over 18 years — and even with starting seed money for some children, or options to make smaller investments, inequities remain.

“It’s designed — especially with this $1,000 seed money — to be ‘an account for everybody,’" Goldman said. “But only some people are gonna be able take advantage of this. Only some people are going to have that ability to do that."

AP Writer Moriah Balingit contributed. Grantham-Philips reported from Chicago.

President Donald Trump arrives to speak during an event at the U.S. Institute of Peace, Thursday, Oct. 8, 2026, in Washington. (AP Photo/Julia Demaree Nikhinson)

The U.S. Army found many systemic breakdowns that led to last year’s midair collision between an American Airlines jet and a Black Hawk helicopter near Washington, D.C., and recommended numerous steps the military should take to prevent future tragedies.

Families of some of the 67 people who died have been pressuring the Army for months to release the report, which was completed in May. The Associated Press obtained a copy from them Thursday morning, a few hours before the Army made it public.

The deadliest plane crash on U.S. soil in over two decades happened when the helicopter collided with the descending airliner as it approached the runway, sending both plummeting into the icy Potomac River.

The Army report highlighted how the air traffic controller at Reagan National Airport could have prevented the crash, but also acknowledged the military’s own failings and other contributing factors.

Former Army Black Hawk pilot Tim Lilley, whose son Sam Lilley was the first officer on the American Airlines jet, said he needs more details from the military. Some information in the report was redacted and the military assigned responsibility for its shortcomings broadly across the Army.

“The Army owes the families and the American public a full accounting of how these risks were allowed to persist, who was responsible for the decisions that allowed them to persist and what will be done to make sure this never happens again,” said Lilley, who is a commercial jet captain today.

The Army acknowledged that in a statement Thursday afternoon.

“We recognize the families’ need for answers and remain committed to transparency regarding the Army’s review,” the Army said.

While the report largely reinforces the National Transportation Safety Board's conclusions, the civilian investigation was more broad and emphasized years of warning signs missed by the Federal Aviation Administration along with a weak military safety culture.

The Army report recommended that the military look beyond Washington make sure similar risks aren’t present in every major city where its helicopters operate. An Army official said the review of helicopter flights in other cities, including Los Angeles and the Seattle-Tacoma region, is ongoing. The official spoke on condition of anonymity because they were not authorized to speak publicly on the situation.

The lieutenant general who authored the report said “breakdowns across all layers of conflict management caused this accident” but “the most salient contributing factor was the two broken radio transmissions” that contributed to the helicopter crew not identifying Flight 5342 as it was circling to land on the airport's alternate runway. The military pilots were wearing night-vision goggles that limited their field of vision and made it difficult to spot the plane amid the lights of the city.

The poorly designed helicopter route in use at the time of the crash provided only a scant 75 feet (23 meters) of vertical separation between a helicopter and a plane landing on Reagan’s secondary runway, and that was only true if the helicopter stuck to the riverbank. This did not allow enough separation to account for the accepted level of error in a Black Hawk’s altimeter, and the NTSB found the helicopter was flying nearly 100 feet (30 meters) higher than its instruments read.

The NTSB said in a letter to the Army last week that the agency is pleased with the progress being made on seven of the eight recommendations to the Army. That contrasts with the FAA, which the NTSB has faulted for failing to implement roughly one-third of the recommendations to that safety regulator.

The Army report said the controller should have provided the helicopter crew with more details about exactly where the plane was to help the pilots spot it, and the controller should have warned the plane about the helicopter headed toward it. The FAA has prohibited controllers from relying on pilots to maintain visual separation in busy airspace since this crash.

The Army said it strengthened its training for helicopter crews after the crash. Once it became apparent that the ADS-B Out system on the Black Hawk that can broadcast its location was inoperable, all 3,585 affected Army helicopters were inspected and reconfigured. The Army is also working to improve the way it monitors safety concerns and reach an agreement with the FAA to share information about close calls.

The main group of families of passengers on the plane, who were flying from Wichita, Kansas, said the report reinforces their call for Congress to pass aviation safety reforms and require aircraft to be equipped with systems that will help pilots know where traffic in the air is.

“It’s a simple concept anyone can understand: aircraft should be able to see each other in the sky. The technology is proven. All that’s required is the political will to do the right thing,” the Families of Flight 5342 group said in a statement Thursday.

“We have waited long enough. We waited for the NTSB. We waited for the Army. Both investigations are complete, and both make clear that collision avoidance technology must be part of the solution. There is nothing left for Congress to wait for,” they said.

Both the House and Senate passed different aviation safety bills, but lawmakers are still working on a compromise piece of legislation to bring up for a vote in both houses of Congress.

Associated Press Writer Konstantin Toropin in Washington contributed.

FILE - Search efforts are seen around a wreckage site of a deadly midair collision between an American Airlines jet and an Army helicopter in the Potomac River near Ronald Reagan Washington National Airport, Jan. 31, 2025, in Arlington, Va. (AP Photo/Alex Brandon, File)