Roughly 10 million of the investment accounts for kids have also been created by parents or guardians following the program’s launch on July 4, meaning that the automatic enrollments bring the total number of enrollees to 70 million. That figure represents every American child under 18 with a Social Security number, according to the White House.
More than $4.5 billion has been deposited into Trump Accounts since they went live this summer, including $1.3 billion in federal seed money, $2.6 billion in philanthropic donations, and over $600 million from family and friends of account owners, according to the White House, which added in a press release that there is “more on the way.”
Here’s what to know about Trump Accounts following the latest announcement.
Accounts for newborns and many young children will receive seed deposits from the federal government or philanthropists Michael and Susan Dell, with amounts depending on their birth year and zip code. Parents, friends, family, or others also have the option of contributing up to $5,000 per child into the accounts each year.
The funds can only be accessed after a child turns 18, at which point their account will become a traditional Individual Retirement Arrangement (IRA) account. While the accounts will be under children’s names, they will be managed by parents or guardians until the owners turn 18.
“Our studies found that when a child has an account like this, they are way more likely to graduate from high school, to go into college and graduate to buy a home, to not be incarcerated, to be a contributing member of society, and it improves the mental health of both the child and the parent, even with a relatively small sum,” Michael Dell said during an event in Washington, D.C., earlier this year.
Madeline Brown, a senior associate at the public policy think-tank the Urban Institute, tells TIME that the “infrastructure” created by the Trump Accounts “provides lots of opportunity.”
“There's no essentially guaranteed other money for lower income kids,” she says. “In a structure that was aiming to reduce inequality, you would see additional annual contributions for lowest income kids, ideally from the federal government.”
Who’s eligible to get a Trump Account, and to receive seed deposits?
Certain kids are also eligible to receive funds in their Trump Accounts from the federal government or Michael and Susan Dell.
Due to an additional $6.25 billion investment from the philanthropists Michael and Susan Dell, children born from 2016 through 2024 who live in zip codes where the median family income is at or below $118,000 will also receive a $250 deposit into their Trump Accounts once they’re activated. Children living on military bases also qualify for the deposits.
Read More: Inside Susan Dell and Michael Dell's $6.25 Billion Effort to Help American Kids
To claim a child’s account, their parents or guardians must go to TrumpAccounts.gov to download the official Trump Accounts app. There, they must verify their identity and relationship to their child before claiming the account.
“Eligible children must also have their Trump Account claimed to receive the one-time $1,000 seed contribution from Treasury,” the Treasury Department wrote in a release on Oct. 1.
How will enrollment in Trump Accounts work moving forward?
“An eligible individual should not lose the opportunity to receive contributions or investment growth merely because no adult completed an election,” the Treasury wrote in the notice.
But she stressed that many people are not aware that they have access to the accounts. One study produced by Brown and her colleagues at the Urban Institute showed that lower income families were less aware of Trump Accounts, aligns with research demonstrating how financially secure individuals and households are often more knowledgeable about financial products and opportunities.
“We just need to continue emphasis on education and outreach, including in different languages with trusted messengers,” Brown says.
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