President Donald Trump highlighted his administration’s new “Trump Accounts” program as one of the most transformative policy initiatives in U.S. history, promising to place $3 to $4 trillion of wealth into the hands of young Americans who might otherwise start life with nothing. Speaking in January 2026, Trump said, “I believe that Trump Accounts will be remembered as one of the most transformative policy innovations of all time.”

The program, enacted through the 2025 One Big Beautiful Bill Act, provides each newborn between 2025 and 2028 with a $1,000 investment in low-cost U.S. stock index funds. With an expected 7% average annual return, these accounts are projected to generate $3-$4 trillion in collective wealth by mid-century, effectively creating a generational endowment for millions of children.

Funding for the program comes from a reallocation of welfare spending, including $863 billion in projected Medicaid reductions and $295 billion in cuts to SNAP over the next decade. Proponents argue that this shift from short-term aid to long-term asset-building could fundamentally reshape intergenerational wealth, lifting young Americans into financial security from birth.

Critics, however, warn that diverting resources from essential programs could exacerbate immediate hardships for low-income families who rely on Medicaid and SNAP. Analysts caution that while the Trump Accounts offer extraordinary potential for wealth accumulation over decades, they may not address pressing health and nutrition needs in the short term.

Supporters of the policy contend that by investing early in every child’s future, the Trump Accounts establish a foundation for financial literacy, economic opportunity, and generational equity. Trump himself framed the program as a signature achievement of his administration, emphasizing its long-term impact on American prosperity.