The reach of Trump Accounts is growing under a new initiative known as Fostering the Future Accounts. An offshoot of the youth savings and investment accounts that the president introduced as part of the One Big Beautiful Bill (OBBB) Act, these accounts are specifically targeted for children in foster care.
Under the program, announced in June, states will be able to open Trump Accounts on behalf of foster youth in the U.S. The hope is that this opportunity “gives foster children the same chance at asset ownership and long-term wealth as every other child,” said First Lady Melania Trump, per The Hill.
What are Fostering the Future Accounts?
Trump Accounts, “which are similar to retirement accounts, have to be established by the child’s parent or guardian,” said The Hill. This could “make it complicated for a child in foster care to have an account created for them.” But Fostering the Future Accounts make it possible for foster youth to gain access to a Trump Account.
“Under the program, the Treasury Department will recognize state child welfare agencies acting as guardians to open accounts for foster youth in their care, which the children can gain access to when they turn 18,” said The New York Times. Aside from differences in account opening, Fostering the Future Accounts “function the same as a standard Trump Account — investing in stock market index funds to grow tax-deferred savings,” said Kiplinger.
How could these accounts benefit foster youth?
More than “400,000 children are in foster care in the U.S., and many are considered financially vulnerable, according to federal data,” said CNBC. When these youth age out of the system, many of them are “largely on their own and likely to lack access to financial resources,” said the outlet, citing a 2024 white paper by The Foundation for Research on Equal Opportunity, a nonpartisan think tank.
Alongside opening the accounts, which anyone can contribute to, the new initiative “allows states to invest benefits that they receive on behalf of foster children in their care, such as Social Security survivor and disability benefits, into the new accounts in the same way parents can contribute to their children’s accounts,” said the Times.
Who can get a Fostering the Future Account?
Technically, any foster youth under the age of 18 with a valid Social Security number is eligible. The catch is, “because Fostering the Future Accounts are managed at the state level, access depends on local legislative approval,” said Kiplinger. As of June, only the following 23 states have pledged to open the accounts:
- Alabama
- Arkansas
- Florida
- Georgia
- Idaho
- Indiana
- Iowa
- Louisiana
- Mississippi
- Missouri
- Montana
- Nebraska
- Nevada
- New Hampshire
- North Dakota
- Ohio
- Oklahoma
- South Carolina
- South Dakota
- Tennessee
- Texas
- Utah
- West Virginia
The Trump administration has set a goal for all 50 states to be signed on by December 2027.
The initiative allows child welfare agencies to open savings accounts as stand-in guardians
