How Much Do Trump Accounts Cost Taxpayers?

Any new government program raises a fair question: how much does it cost? Here is a straightforward look at the numbers behind Trump Accounts, with no spin in either direction.

The Pilot Deposit: $3.6 Billion Per Year

The federal government provides a one-time $1,000 deposit for every eligible child born between January 1, 2025 and December 31, 2028. About 3.6 million babies are born in the United States each year. That means the annual cost of the pilot deposits is roughly $3.6 billion.

Over the four-year pilot window, the total cost comes to approximately $14.4 billion. After 2028, no more pilot deposits are made — though families can still open Trump Accounts and contribute their own money.

Administrative Costs

Beyond the deposits themselves, there are costs to run the program. The IRS must process Form 4547 elections, manage the trumpaccounts.gov portal, and coordinate with approved custodians who hold the accounts. These administrative costs have not been fully detailed yet, but they add to the total.

Custodians (the financial institutions that hold the accounts) also bear costs for account setup, compliance, and reporting. Some of these costs are absorbed by the private sector, not taxpayers.

The Dell Pledge: $6.25 Billion in Private Money

An important distinction: the Dell Foundation's $6.25 billion pledge is entirely private money. Michael and Susan Dell committed $250 per child under age 10 in ZIP codes where median household income is below $150,000. This is not taxpayer-funded and should not be counted as a government expense.

Putting It in Context

The federal budget is roughly $6.5 trillion per year. At $3.6 billion per year, the Trump Account pilot deposits represent about 0.06% of annual federal spending. For context:

• The Child Tax Credit costs over $100 billion/year
• SNAP (food stamps) costs roughly $110 billion/year
• Federal student aid totals over $150 billion/year

That does not make the cost insignificant. But it does put it in perspective relative to other programs aimed at families and children.

Could It Save Money Long-Term?

This is where the math gets speculative. If Trump Accounts successfully help a generation build wealth, the government could see two long-term benefits:

• Reduced safety net spending — Young adults with $50,000+ in assets may be less likely to need government assistance
• Increased tax revenue — Withdrawals from the accounts are taxed as ordinary income, generating future federal revenue

However, these effects will not be measurable until the first cohort of children reaches age 18 in 2043. Any long-term savings projections are estimates, not certainties.

How It Is Funded

The pilot deposit program is funded through general revenue as part of the One Big Beautiful Bill Act (OBBBA), signed into law on July 4, 2025. There is no dedicated tax or fee that pays for Trump Accounts specifically. The cost is part of the overall federal budget.