Overview
- The program began accepting deposits after going live on July 4 and was formally marked by President Trump ringing the NYSE and Nasdaq opening bells from the Oval Office.
- Treasury says more than 6 million accounts have been opened and about 1.4 million children meet the law’s criteria to receive the one-time $1,000 federal seed payment, while the president reported more than 500,000 deposits—a count that other officials have treated as disputed.
- Accounts are custodial, IRA-style investments owned by the child and managed by a parent or guardian until age 18, and parents or third parties may contribute up to $5,000 per child per year with employers able to add up to $2,500 tax-free.
- Initial administration is handled by Bank of New York Mellon with a Robinhood-built app for parents, and the Treasury set the default investment to the State Street SPDR S&P 500 ETF with a statutory fee cap of 0.10% and a promise to add more low-cost ETF options soon.
- Large private pledges, including $6.25 billion from Michael and Susan Dell and $250 million from Micron, back targeted supplements, but analysts warn the program risks concentrating benefits among higher-income families and channeling long-term capital to a few large index providers, which could widen wealth gaps if lower-income uptake stays low.