U.S. Treasury Secretary Scott Bessent and First Lady Melania Trump today announced a new initiative to enhance financial security and opportunity for young Americans in foster care by expanding access to "Trump Accounts." This policy, part of Mrs. Trump’s "Fostering the Future" platform, aims to equip foster youth with tools for long-term financial independence.
The initiative combines dedicated savings accounts, funding, and enhanced financial literacy education to promote wealth-building. Secretary Bessent said, "We at Treasury are grateful for Mrs. Trump’s leadership in advancing Trump Accounts, the most important benefit for young people since the GI Bill." He added that it will provide states with flexibility to direct existing resources toward the future of foster youth.
Under the new policy, state, territorial, or tribal child welfare agencies acting as legal guardians can open initial Trump Accounts for eligible children with a Social Security Number who do not already possess one. Agencies must use Form 4547, with guidance provided by the IRS Office of Governmental Liaison. States are strongly encouraged to authorize agencies to establish and manage these accounts proactively.
First Lady Melania Trump emphasized the impact, saying, "Fostering the Future Accounts give foster children the same chance for asset ownership and long-term wealth building as every other American child." The initiative also allows states to deposit federal survivor benefits into these accounts, up to an annual limit of $5,000, to support future needs like education, housing, and career development. This effort underscores the Administration's commitment to empowering vulnerable populations and fostering financial resilience.