As the president touts Trump Accounts, some families are still waiting for baby's $1,000
President Donald Trump says Trump Accounts could hoist children out of poverty and give more Americans the chance to benefit from investments in the stock market. But some parents say they’re still waiting for the money to arrive.
Trump on Wednesday plans to speak at a Georgia high school to promote the investment accounts, which offer $1,000 in seed money to every child born during his second term. The accounts went live July 4, two days before Trump rang the opening bells for both the New York Stock Exchange and NASDAQ from the Oval Office.
The tax-advantaged accounts, created last year through Trump’s signature One Big Beautiful Bill, can be opened for any child under the age of 18. The Treasury Department boasts 6.5 million sign-ups for Trump Accounts, with 1.5 million of those eligible for the $1,000 seed funding for babies born from 2025 through 2028.
Boosters of the program say it’s a chance to give more Americans a stake in the stock market. They hope it will stem the rising popularity of democratic socialists, who seek to raise taxes on corporations and the wealthy to ease the cost of things like food and healthcare for low-income and middle-class Americans.
After the Trump Accounts are set up, parents, relatives, friends and employers can contribute to them. Some billionaires have also pledged philanthropic contributions. The money is turned over to private firms that invest it in index funds, a type of mutual fund that tracks the performance of the stock market. The money can’t be accessed until the child turns 18, and only then for specific purposes, such as going to school, opening a business or buying a home.
For babies born since Trump took office last year, $1,000 from the U.S. Treasury is supposed to kick off the accounts. While some parents report receiving the money, others said in interviews and on social media they’re still waiting for the accounts to receive $1,000.
Masaki and Kristina McLellan, new parents from Bergen County, New Jersey, said in an interview they were wary of signing up for the accounts because they worried it was a promotional stunt for the president. But the $1,000 incentive persuaded the couple, whose daughter Maya was born in late March, to start an account anyway.
Masaki McLellan said he applied for the account July 6. At first, the application was rejected, but the account was activated after he spent an hour on the Trump Account hotline. He was told he’d see the money in the account in 10 days. Now, he says, he’s been told it will take up to four weeks.
Kristina McLellan said she was disappointed it was taking so long to fund her daughter’s account. But the infant has multiple other investments already compounding for her. Maya’s parents have already started a 529 college savings plan and a custodial brokerage account for her. The Trump Account is the third investment account in the little girl’s name.
“We definitely want to give her options for her future and make sure she can choose what she wants to do,” said McClellan, a studio director for a local news station, who returns from maternity leave next week.
The Treasury Department said the lag between opening an account and receiving the seed funding constitutes “standard processing time, like receiving a tax refund” and that the overwhelming majority of parents are only waiting one to two days. But the department likes to give parents a conservative estimate for how long it might take for the money to be transferred, such as the estimate of up to four weeks given to the McLellans.
“Trump Accounts level the playing field by allowing every parent to invest in their children’s future, not just wealthy families with trust funds,” the department said. “With roughly 1 million sign-ups per month before launch, Trump Accounts have become the most popular and successful government-backed savings product in U.S. history.”
Trump’s stop in Georgia comes as he and fellow Republicans face pressure in the midterm elections for their handling of the economy. Only 33% of U.S. adults approve of Trump’s economic leadership, among the lower ratings of his second term, according to a June survey by The Associated Press-NORC Center for Public Affairs Research. Trump pledged to lower costs, but his tariffs and the war in Iran have instead helped to increase prices.
Trump Accounts are similar to “baby bonds,” championed by Democratic-led cities and states meant to shrink the wealth gap between low- and high-income children. But unlike most baby bonds, which generally target kids from disadvantaged backgrounds, Trump Accounts are available to families of all incomes.
The program has faced criticism from those who say it does nothing to help families in a child’s first years of life, when children are most likely to experience poverty, homelessness and hunger. And the bill that created the program, the president’s signature One Big Beautiful Bill, also slashed funding for programs that are disproportionately used by children, including Medicaid and the Supplemental Nutrition Assistance Program.
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Associated Press writer Adriana Morga contributed to this report.
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