Treasury Department Unveils Low-Cost Investment Framework for Trump Accounts

The U.S. Treasury Department released proposed guidance Thursday outlining eligible investments for Trump Accounts, establishing a framework for qualifying financial products moving forward.

These tax-deferred savings vehicles for children—formally designated as 530A accounts—are intended to jump-start long-term wealth accumulation.

Under the proposed rules, an eligible index must be designed primarily to track a broad segment of the U.S. or global equity market using objective financial criteria. The guidance also restricts eligible investments to those featuring low expense ratios, among other qualifications.

“By emphasizing straightforward, low-cost investment options, the proposed guidance would allow children to benefit more fully from decades of compound growth and ensure that a greater share of investment returns remain in their accounts,” the department stated.

“Every dollar in a child’s Trump Account should be working toward that child’s financial future, not diminished by unnecessary fees,” Treasury Secretary Scott Bessent said in a statement. “Under President Trump’s leadership, Treasury is putting simple, commonsense protections in place to help families keep more of their investment returns.”

Once an account is opened, families can monitor activity via the Trump Accounts app, developed in partnership with Robinhood.

“We wanted to make it as easy as possible for every American starting at birth to get access to the great American economy, to get ownership of these companies from birth and see the magic of compound interest,” Robinhood CEO Vlad Tenev said Wednesday on CNBC’s “Squawk Box.”

“Over time, there’s been discussion about more investment options, but I think the default of a diversified portfolio of the most prominent companies has been a great way to start and has been very effective,” Tenev added.

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