The One Big Beautiful Bill Act (OBBBA) was signed into law on July 4, 2025, making changes to Medicaid, SNAP benefits, taxes, and immigration. One provision, the Trump Account, allows American minors born between 2025-2028 to receive a $1,000 deposit from the government to start a tax-free investment account.

Parents, guardians, employers, and individuals can contribute up to $5,000 annually to a child’s Trump Account, with an additional $2,500 from employers. Account holders can only invest in ETFs or mutual funds tracking American stock indexes, with withdrawals only allowed at age 18.

The White House estimates that with a 5.4% return, the $1,000 initial deposit in a Trump Account could grow to $2,577 by age 18. With a 10.3% return, it could reach $5,839, and with an 18.5% return, it could grow to $21,229. These amounts could continue compounding over time.

Under various return scenarios, a Trump Account with a 5.4% return could grow to $6,301 at age 35 and $23,466 at age 60. With a 10.3% return, it could amount to $30,913 at 35 and $358,534 at 60. The account holder must pay income taxes on withdrawals.

Read more at Yahoo Finance: What the $1K in a Trump Account for Your Kid Could Grow To If You Don’t Invest Anything Else