Trump Accounts are rolling out, but most families won't get much from them

During this year's Super Bowl, a flashy ad from the Trump administration promised "free money" for kids. The offer wasn't a stunt-it's now real, in the form of Trump Accounts, a new federal program that opened last week. Every child under 18 whose family files taxes and claims them as a dependent gets a $500 deposit into a long-term investment account. The goal, officials say, is to help the next generation build wealth early. But in practice, the benefits are uneven, and for many families, the boost is small or out of reach.

The accounts work like custodial investment vehicles. The initial $500 comes from the government, but only if a family files a tax return and lists the child as a dependent. That requirement alone leaves out large groups-like very low-income households that don't earn enough to file, or undocumented families who may avoid the tax system. Once the account is open, families can add their own money, which then grows through market investments over time, tax-free until the child turns 25.

On paper, that sounds promising. But the real gains depend heavily on how much families can contribute beyond the initial deposit. A family that puts in $1,000 a year could see meaningful growth over two decades. But for families living paycheck to paycheck, that kind of contribution isn't realistic. As a result, the accounts may end up widening the wealth gap, not closing it.

Supporters, especially on the right, see the program as a shift away from traditional welfare and toward asset-building. They argue that teaching kids about investing early-by giving them skin in the game-can change financial habits for life. Fox Business has highlighted stories of parents using tax refunds to top up the accounts, calling it a "gateway to generational wealth."

But progressive critics say the program misses the point. Jacobin and other left-leaning outlets argue that a $500 deposit, while welcome, doesn't come close to addressing child poverty or systemic inequality. They note that real financial security comes from stable income, affordable housing, and access to education-not a small investment account that takes decades to mature.

There's also concern about the timing. The rollout coincides with tax season, making it visible to filers, but that visibility favors those already engaged with the financial system. Outreach to non-filers has been minimal. And because the accounts are tied to market performance, future returns aren't guaranteed-especially if a child's account sits idle with no additional contributions.

For now, the program is new enough that its long-term impact is unclear. What is clear is that while every child gets the same starting amount, the ability to grow it depends on resources many families simply don't have. That gap between promise and reality is where the debate is heating up.