Trump Accounts Explainer

Updated October 1, 2026

What are Trump Accounts?

Trump Accounts are new accounts—structured as Individual Retirement Accounts (IRA) but with special rules—that are created or organized for the exclusive benefit of a child. U.S. citizens with social security numbers are eligible. Once the child turns eighteen, funds from the account can be used for certain qualifying expenses, including education and the purchase of a home. The Trump Account accepts contributions up to a maximum of $5,000 a year until the child turns eighteen. The funds in the accounts can be invested but are subject to certain restrictions.

Impact on Philanthropy

Nonprofits, including private foundations and donor-advised funds, are permitted to contribute to Trump Accounts as long as they provided contributions to one of the following qualified classes:

All account beneficiaries under the age of 18
All account beneficiaries under the age of 18 who reside in one or more qualified geographic areas (such as a U.S. state)
All account beneficiaries under the age of 18 who were born in a specific calendar year

Critically, nonprofits are exempted from the $5,000 annual contribution limit.

Recent Developments

Legislation

Trump Accounts were created in 2025 by the One Big Beautiful Bill Act (P.L.119-21). P.L.119-21 also created a pilot program to contribute $1,000 into the Trump Accounts of all eligible children born between January 1, 2025 and December 31, 2028.

Regulations

The Department of the Treasury and the IRS issued a notice of intent to issue regulations with respect to Trump Accounts in December 2025. The guidance clarifies how Trump Accounts will work and makes explicit that donor-advised funds can make contributions to Trump Accounts.
- The notice also states that Treasury and the IRS will aim to answer a series of questions through regulations, including how accounts will be established and how rollover contributions will work. The Council submitted comments asking for clarifications and making suggestions to allow for better partnerships with philanthropy.
In March 2026, Treasury and the IRS issued a notice of proposed rulemaking (NPRM) providing guidance on making an election to open a Trump Account. The NPRM does not touch on most issues the Council raised in our comments, but it does state that further guidance is coming.
On July 2, 2026, Treasury announced that it will accept philanthropic contributions of publicly traded stock and apply them to eligible Trump Accounts consistent with the donor's instructions.
On September 30, 2026, Treasury and IRS released temporary regulations and a notice of proposed rulemaking (NPRM) regarding the general requirements and contributions for Trump Accounts.
- The temporary regulations are effective immediately. Beginning on or around October 1, 2026, Treasury will automatically create accounts for eligible children who do not already have a Trump Account and will conduct periodic enrollment thereafter. These accounts may receive qualified general contributions from nonprofits and governments without requiring a parent or guardian to first open an account.
- The temporary regulations include several provisions that impact nonprofits can contribute to Trump Accounts:
  - In addition to the qualified classes detailed above, the temporary regulations also allow contributions to an “approved class” of at least 5,000 children defined by both location and birth year.
  - A 501(c)(3) organization making qualified general contribution furthers its charitable purposes, and donations to a 501(c)(3) to fund these contributions may qualify for a charitable deduction.
  - Donor-advised fund sponsoring organizations are permitted to use DAF assets to make qualified general contributions.
  - Applicable expenditure-responsibility requirements are treated as satisfied.
- The NPRM withdraws the March 2026 proposal and generally proposes the same provisions listed in the temporary regulations. Where they differ is that the NPRM proposes and requests comments on creating a zip-code based process for geographic contributions. This provision states that an eligible donor could propose a geographic area using one or more five-digit ZIP codes. The area would need to include at least 5,000 eligible beneficiaries and consist of either contiguous ZIP codes that do not surround an excluded ZIP code or ZIP Code Tabulation Areas with median household incomes below an annually adjusted threshold. Treasury and the IRS specifically request comments on this approach and possible alternatives. Comments are due November 30, 2026.

Other Developments

On December 2, 2025—Giving Tuesday—Michael and Susan Dell announced a $6.25 billion donation to Trump Accounts. The Dells will give $250 to the Trump Account of children 10 and under living in areas with a median household income under $150,000. Michael and Susan Dell, Speaker of the House Mike Johnson (R-LA), Ways and Means Committee Chair Jason Smith (R-MO), Congressional Philanthropy Caucus Co-Chair Blake Moore (R-UT), and Senator Ted Cruz (R-TX) joined President Trump at the White House to announce the donation.