A new Government program called Invest America aimed at creating investment accounts for youth called Invest America accounts, commonly referred to as a “Trump Accounts” was created as part of the One Big Beautiful Bill, Section 530a, is available for signup next year and it is something every parent should know about and consider. It is designed to give children a long-term savings and investing vehicle and even FREE starter money (see details below). This article is an explainer to help you understand what the program is, what it’s good for, eligibility requirements, and how to signup for the program.
High Level Summary
At a high level the Invest America Program is a Government sponsored Investment program for Youth.
Who it’s for: all children under 18 (activated by a parent/guardian). [2]
Investments: Contributions must be invested in index funds that track the stock market (i.e., broad investments, not stock-picking). [4][5]
Access to Funds: Generally accessible at age 18 for qualified expenses. [4][5]
Investing wisely is always a good idea, but investing wisely early in life is an even better idea because of the power of compounding. The Invest America account is a great way to help your child by teaching them the power of investing, while giving them a powerful tool to assist with their Financial well being. This program could be the gateway to help families of all background to home ownership, college educations, and more vibrant economic futures. Here are some great features of the program:
Savings – The program is similar to a IRA for youth or a 529 savings plan, you can invest and earnings compound over time and they have access to it when they turn 18 years old on qualified expenses (e.g. College, Work Credentials, starting a business, First Time Home purchase). [1][2] Unlike a 529 they can use it on qualified expenses other than education.
Guard Rails – The program by law only allows investments in broad US Index Funds, like the S&P 500, with low fees (No more than 0.10%). These investments beat most other investment classes over the long term. These index funds are diversified, professionally managed, overseen by the Treasury and help novice investors by investing in the broad market and helping them share in the gains in America.
Contributors & Contributions – The program allows up to $5000 a year per child in contributions that can come from almost anyone including Parents, Guardians, Friends & Family, and that limit maybe increased by Qualified Charitable Organization and Government Entity contributions that allow contributions above the $5000 annual limit.
Tax Deferred – The investment earnings are held tax free until withdrawal. At 18 the money maybe withdrawn for qualified expenses and those withdrawals become taxable. After 18 the account acts like a normal IRA with (not IRA ROTH) with the same rules and limits.
Free Starter Money – Your child maybe eligible for FREE Starter money, up to $1000, see details below. A head start from birth means more time to compound and grow investments.
Charitable Contributions – There is a growing list of philanthropist that are donating significant amounts to this program, and the ability of additional non profits to contribute to accounts for various constituents, especially for those most in need. See details below.
Employer Benefits – Dozens of companies are jumping on the bandwagon and specifically supporting the Invest America program and providing Employer Benefits for child Invest America accounts. Creating a whole new category of Employee Benefit beyond Child Care subsidies. A large and growing list of major companies are supporting this initiative.
What is it good for?
Helping your child understand Finances can be one of the most powerful and important things a parent can do for their child. Setting them up, and helping them understand Finances and ensuring their Financial Wellbeing can set them up for a lifetime of success. The program can help with:
Financial Literacy – Teaches your child about investing, and exposes them to understand concepts like savings, compounding, and the stock market.
Wealth Building – It invests in equity index funds exposing them to one of the best investment and wealth building classes of investments over the long term, helping them gain access to one of the best assets used by the Wealthy to accumulate wealth.
Major Life Purchases – The program can be used to help youth invest in their first house, pay for college, work credential programs, or starting their own business. All major life events that can improve a persons outlook on the future.
Retirement Security – By investing early, and using the account as a retirement account. After 18 you can continue to invest with the same rules as an IRA over a very long horizon and really take advantage of the power of compounding to create a large financial asset for your child when they retire.
How to Signup?
Full signup details are not available yet but sign-ups are expected to open July 4, 2026, and the government has said official enrollment instructions and approved providers will be published when enrollment opens. [2][3] These signups will be separate from your Tax Returns, and you must sign up to be eligible. We will update this article when the announcement is made, and details are available with a link and instructions.
Eligibility for the $1,000 FREE Federal Starter Money
One of the great components of this program is a head start for Newborns. The program will seed $1000 into the account for those eligible, giving an incredible head start in investing, and potentially turning into 65 years or more of investing and compounding before retirement something that is often only common in the very wealthy or fiscally disciplined. Here’s the details for the Federal Starter deposit:
Must be born after December 31, 2024, and before January 1, 2029 (i.e. Calendar years 2025-2028), if an account is established for them. [1]
Must be an American citizen
Must have a valid Birth Certificate
“If you could give your child $1 Million for retirement, would you?”
This is not a joke! No, the Government is NOT going to give you $1 Million dollars, but with a little effort they can give you a decent chance to make $1 Million, and all you need is time, patience, and a small investment and compounding will do the heavy lifting. The program is built to be a platform to encourage continued saving (parents, family, and potentially employers/partners), not just a one-time seed. [1][2] Even modest contributions early can push the retirement age value toward (or beyond) seven figures. Here is the scenario, you have a Newborn, you enroll them in the Invest America program and they receive their $1000 Federal Starter money and keep it for 65 years invested in an S&P 500 Index Fund.
What you could get for FREE*
If the account receives the Starter Seed $1,000 at birth and stays invested until age 65 with NO other investments you can get:
We’ve run a few other scenarios, one with a modest $12 a month contribution, another with a $500 a year contribution, and a max contribution scenario. One requires skipping a few coffees a month, the other is probably a heavier lift for most people but still doable, and the last is probably out of reach for many, but here for illustration purposes.
Scenario 2 (Low)
Scenario 3 (Modest)
Scenario 4 (Max)
Initial Investment
$1,000
$1,000
$1000
Rate of Return
9.7%
9.7%
9.7%
Ongoing Contribution
$12/month ($144/year)
$500/year
$5000/year Max
Time Period
65 Years
65 Years
65 Years
Contribution at End
$9,360
$32,500
$325,000
Value at End of Period
$1,050,191.65
$2,726,814.75
$23,572,646.64
Run your own Scenarios with the Tax Project Investment Calculator
Note*, these estimates are hypothetical and based on historical averages and assume you were eligible for the $1000 Starter seed deposit. Your actual returns may vary based on the market and these estimates do not calculate inflation or include the taxable gains costs which maybe substantial. Use the calculator to provide estimates and speak with a Financial Advisor for your specific needs to review the numbers.
Charitable and Employer Contributions
The Invest America program has specific carveouts for non family contributions including Non Profit organizations and Government Entities that are making significant pledges and contributions specifically to the program. Just this month Michael and Susan Dell announced a $6.25 Billion contribution to expand eligibility beyond newborns. The funding is for $250 for up to 25 million children, aimed at kids who do not qualify for the federal $1,000 newborn seed. [4][5][9] Non Profit 501(c)3 organizations like InvestAmerica.org are being setup specifically to promote and support Invest America and provide resource and a place where Philanthropists, and Parents can learn more and lend support.
These companies and more are contributing, including some providing employee benefits for child Invest America accounts.
Invest America supporters
Summary
At the Tax Project we do not promote specific policies, but it’s hard not to like something with so many positive benefits. While nothing is perfect, and as with all programs there will likely be some hiccups, challenges, and critics – it is nice to see a program that targets helping the youth of America in a broad way that helps everyone but also provides a boat that will lift many disadvantaged children and potentially dramatically change their future trajectory for the better and help them share in American prosperity. Honestly, with all the gloom and doom around the National Debt, Social Securities challenges, Student Debt, Home affordability, Cost of Living challenges that the youth today face, having a public program with deep cooperation from the private sector allowing our youth access to the Capital markets, and giving them support and more importantly hope that their future may be better. Every parent, every child, and every business leader should know about this program. Check in periodically, we will be following and providing more on this program and looking for ways to contribute our support.
References
[1] The White House. (2025, August 29). Trump Accounts Give the Next Generation a Jump Start on Saving. (The White House) [2] Invest America. (n.d.). Invest America – program overview (sign-ups expected July 4, 2026; eligible children under 18). (Invest America) [3] Invest America. (n.d.). FAQ – Treasury/IRS instructions and approved providers at enrollment. (Invest America) [4] Reuters. (2025, December 2). Michael and Susan Dell pledge $6.25 billion… (Reuters) [5] Associated Press. (2025, December 2). Michael and Susan Dell donate $6.25 billion… (AP News) [6] Shiller, R. (n.d.). Online Data – U.S. Stock Markets 1871-Present. Yale University. (econ.yale.edu) [7] Siegel, J. J. (1992). The Equity Premium: Stock and Bond Returns since 1802. (efinance.org.cn) [8] Damodaran, A. (n.d.). Historical Returns on Stocks, Bonds and Bills (S&P 500), 1928-2024. NYU Stern. (Stern School of Business) [9] The White House. (2025, December 2). Landmark Dell Gift Supercharges Trump Accounts for America’s Kids. (The White House)
As we approach the United States’ 250th Semiquincentennial next year, a monumental shift in our nation’s economic strategy is underway. President Trump’s recent executive order to create a U.S. Sovereign Wealth Fund (SWF) marks a pivotal moment in American financial history[2][4]. At the Tax Project Institute, we have long discussed the potential benefits of a national investment account in the form of a SWF, recognizing its transformative potential for our economy (See our Article on Sovereign Wealth Funds here).
A Sovereign Wealth Fund is a state-owned investment fund that manages a country’s excess reserves, typically derived from natural resource revenues, trade surpluses, or other sources of national wealth. These funds are designed to invest in a diverse range of assets, both domestic and international, to generate returns and support long-term economic objectives. Much like a national investment account, it grows and compounds over time, and as it grows it becomes of source of revenue offsetting the need for things like additional taxes.
The creation of a U.S. SWF is a watershed moment that may be viewed by future generations as one of the most impactful acts in American history, comparable to the Louisiana Purchase, the Emancipation Proclamation, or the New Deal. Just like a savings and investment account, it doesn’t sound or look like much now, but in 50 or 100 years it could be game changing, and looked at in the same way as other major acts. While it won’t immediately solve our national debt issues or eliminate budget deficits, it could be the first step towards putting our country on a more substantial economic footing.
What are they for?
Sovereign Wealth Funds serve various purposes across the globe. Some of the key areas where SWFs are utilized include:
Economic Diversification: SWFs help countries reduce their dependence on a single sector or resource by investing in a wide range of industries and assets.
Intergenerational Savings: They can preserve wealth for future generations, especially in countries with finite natural resources.
Stabilization: SWFs can act as fiscal stabilizers during economic downturns or when commodity prices fluctuate.
Strategic Investments: They allow countries to invest in key industries or technologies that align with national interests.
Infrastructure Development: Many SWFs focus on funding critical infrastructure projects both domestically and internationally.
In short, they are investment accounts run by the country, and the hold the potential to fund significant portions of future expenses, and offset revenue short falls.
What it means for the U.S?
The U.S. SWF has the potential to become the largest in the world, given the size and strength of the American economy. As of 2025, the largest SWF is Norway’s Government Pension Fund Global, with assets under management of $1.78 trillion[6]. The U.S. fund could potentially surpass this figure, leveraging the country’s vast economic resources and global influence.
The implications of a U.S. Sovereign Wealth Fund are far-reaching:
Enhanced Global Economic Influence: A large U.S. SWF would significantly increase America’s economic clout on the world stage, potentially rivaling or surpassing the influence of other major SWFs from countries like China, Norway, and the UAE[6].
Domestic Investment: The fund could be used to finance critical infrastructure projects, support emerging industries, and drive innovation within the United States.
Long-term Fiscal Planning: A well-managed SWF could provide a cushion against economic downturns and help address long-term fiscal challenges.
Wealth Distribution: If structured appropriately, the fund could potentially provide direct benefits to American citizens, similar to Alaska’s Permanent Fund[4].
Strategic Acquisitions: The fund could be used to acquire stakes in strategically important companies or technologies, as hinted at by the potential involvement in TikTok[2][4].
Market Impact: The sheer size of a U.S. SWF could have significant effects on global financial markets, potentially influencing asset prices and investment trends
While not a panacea, a SWF offers significant Economic flexibility at scale to offset and provide services in a number of ways to minimize economic shocks, like the 2008 Great Recession or the COVID pandemic, or offset expenses on long term items like infrastructure, or potential pending large scale changes in the market, like AI offsetting white collar jobs.
Global Context
As we consider the potential of a U.S. Sovereign Wealth Fund, it’s important to look at some of the largest existing SWFs for context:
Country
Fund
Value
Norway
Norway Government Pension Fund Global
$1.78 Trillion
China
China Investment Corporation (CIC)
$1.3 Trillion
Abu Dhabi
Abu Dhabi Investment Authority
$1.05 Trillion
Kuwait
Kuwait Investment Authority
$1 Trillion
Saudi Arabia
Public Investment Fund
$925 Billion [6]
These funds have played crucial roles in their respective countries’ economic strategies, from Norway’s focus on preserving oil wealth for future generations to China’s efforts to diversify its foreign exchange reserves. Given that the US GDP is almost 13 times larger than Norway, you can see the potential size of the fund and the proceeds that it maybe able to throw off. Just doing simple math lets say the US SWF reaches $20 trillion, taking 4% annually from the fund to reinvest on Americans (offset taxes, new infrastructure, services, direct payments, etc.) could lead to $800 billion in annual offsets. Given the unending demands on government budget, this won’t solve our problems, but it can certainly help.
Summary
The creation of a U.S. Sovereign Wealth Fund represents a paradigm shift in how America approaches its economic future. As Treasury Secretary Scott Bessent explained, “It will include a mix of liquid assets and resources that we possess domestically as we aim to make them available for the American populace.”[4] This approach could unlock significant value from government assets and activities that have previously been underutilized.
However, the establishment of such a fund is not without challenges. Proper governance structures, transparency measures, and regulatory frameworks will be crucial to ensure the fund operates in the best interests of the American people. As a 2024 study by the Carnegie Endowment for International Peace warned, without appropriate safeguards, sovereign wealth funds could potentially become “vehicles for corruption, money laundering, and other illegal activities.”[4]
The development of the U.S. SWF over the next year will be a process closely watched by economists, policymakers, and global investors alike. Its potential to reshape America’s economic landscape and global financial influence cannot be overstated. As we celebrate our nation’s 250th anniversary, the creation of this fund may well be remembered as a defining moment in our economic history.
In conclusion, the establishment of a U.S. Sovereign Wealth Fund represents a bold step towards securing America’s economic future. By leveraging our nation’s vast resources and economic power, this fund has the potential to drive innovation, support critical investments, and ensure long-term fiscal stability. As we move forward, it will be essential to strike a balance between ambitious growth and responsible management, ensuring that this new economic tool truly serves the interests of all Americans for generations to come.
Tax Project Institute is a fiscally sponsored project of MarinLink, a California non-profit corporation exempt from federal tax under section 501(c)(3) of the Internal Revenue Service #20-0879422.
