A new savings and investment account will be available for children in foster care, the Trump administration unveiled on June 11.
First lady Melania Trump and Treasury Secretary Scott Bessent, on June 11, introduced Fostering the Future Accounts, expanding the Trump Accounts framework to give each newborn a $1,000 tax‑deferred investment start.
“For the first time, children in foster care will have access to a dedicated savings and investment vehicle: Fostering the Future Accounts,” Trump said in prepared remarks.
“Fostering the Future Accounts give foster children the same chance for asset ownership and long-term wealth building as every other American child. By investing in our foster youth now, we help strengthen America’s workforce, communities, and economic future.”
The initiative authorizes child welfare agencies in a state, territorial, or tribal government to serve as guardians for children in foster care solely to open and manage these accounts. For children who receive Supplemental Security Income because of a disability or federal survivor benefits, the state can direct those funds into a Trump Account.
As many as 400,000 children are in the U.S. foster care system, and about 20,000 of these kids age out of foster care without a permanent family, according to the Education Department.
The federal government spends approximately $12 billion on child welfare programs per year. Half of these payments are directed to the Social Security Administration to fund states’ foster care budgets.
Research suggests that these children are financially vulnerable, often lacking the resources to succeed on their own.
“Former foster youth are more likely than their peers to succumb to poor life outcomes from homelessness to incarceration to being the victim of trafficking,” the Foundation for Research on Equal Opportunity said in a white paper.
The issue of foster youth has been the theme for the first lady’s second stint at the White House. She has advocated for foster care reforms and expanding access to services for children in the system.
In May, the House passed bipartisan legislation to bolster support for foster youth. Included in the bill is support for current and former foster youth who are between 14 and 21 and “transitioning to independence and adulthood.”
“This historic effort to modernize America’s foster care system would have never been possible were it not for the dedicated leadership of members of the Ways and Means Committee who reached across the aisle and built a groundswell of bipartisan support for reform,” House Ways and Means Committee Chairman Jason Smith (R-Mo.) said in a statement last month.
Trump Accounts
Close to two dozen governors—including Florida Gov. Ron DeSantis, Arkansas Gov. Sarah Huckabee Sanders, and Texas Gov. Greg Abbott—have committed to establishing the foster accounts in their states.
The White House encouraged all 50 states to participate in the program.
Enrollment opens on July 4. Eligible children must be U.S. citizens born between Jan. 1, 2025, and Dec. 31, 2028.
Supporting foster youth has become embedded in President Donald Trump’s signature program, Bessent said.
“When Trump Accounts launch on July 4, every eligible child in America will be able to participate, including those for whom the state serves as a legal guardian,” he said.
Last summer, the White House Council of Economic Advisers estimated that Trump Accounts—assuming no additional contributions and average stock market conditions—will grow to nearly $6,000 by the time they turn 18. Accounts could top $300,000 based on maximum contributions and average stock market returns.
The Treasury Department rolled out Trump Accounts on app stores nationwide last month.
