ChildWelfare News & Analysis

Trump Accounts for Foster Children: 25 Governors Pledge Support

The Trump Accounts initiative allows states to open tax-advantaged investment accounts for foster children, enabling contributions of up to $5,000 annually until the beneficiary turns 18. Launched on July 4, the program includes a $1,000 initial deposit for newborns from 2025 to 2028 and allows employers to contribute up to $2,500 per worker each year. There are currently 331,747 children in foster care, with approximately 15,000 aging out in 2025. This initiative offers a potential financial safety net for these youths as they transition into adulthood, which may support their financial stability.