Newsweek: Trump Account Investment Rules Would Change Under New Plan – Newsweek
A new House proposal would expand how money in Trump Accounts, pushed as a wealth-building tool for families, can be invested, potentially allowing digital asset indexes alongside traditional stock market funds.
Newsweek contacted the U.S. Treasury Department via email for comment on Wednesday morning.
Why It Matters
Trump Accounts are designed to hold money for decades, meaning even small changes to investment rules could significantly affect long-term returns for millions of children.
The proposal comes as the program is still being rolled out, raising questions about complexity, oversight, and how families will navigate evolving rules, according to financial experts speaking to Newsweek and CNBC.
What To Know
A new Republican-backed bill would change how money held in Trump Accounts can be invested, expanding the types of assets allowed inside the child-focused savings program created under President Donald Trump’s tax law, according to congressional records.
The proposal, introduced in the House as H.R. 7737, would amend the Internal Revenue Code to allow digital asset indexes to qualify as eligible investments for Trump Accounts, which are currently limited to broad U.S. equity index funds.
H.R. 7737 was introduced on February 26 and referred to the House Ways and Means Committee, where it will be considered alongside other tax-related proposals.
The bill is sponsored by Representative Young Kim, a Republican from California, with Republican co-sponsors, and remains at the earliest stage of the legislative process, according to GovTrack.
Trump Accounts were established under the administration’s One Big Beautiful Bill as a new, government-backed investment vehicle for children, designed to help families build long-term wealth through early market exposure, according to the Internal Revenue Service (IRS).
The program has also drawn substantial private backing, with billionaires, major banks, and corporations pledging matching contributions to supplement the federal seed money in Trump Accounts.
Under existing rules, parents or guardians can open a Trump Account for a child under 18, with funds required to be invested in mutual funds or exchange-traded funds tracking broad U.S. stock indexes such as the S&P 500, according to Treasury and IRS guidance.
The new bill would expand those rules by allowing investment in digital asset indexes, marking a significant shift in how the accounts could be structured if the legislation advances, according to legislative summaries.
Trump Accounts themselves are scheduled to begin accepting contributions later this year, with a one-time $1,000 federal seed contribution available for eligible children born between January 1, 2025, and December 31, 2028, according to IRS guidance.
Parents, employers, charities, and other contributors can add additional funds to the accounts, subject to annual limits, with withdrawals generally restricted until the child turns 18, according to Treasury and IRS materials.
The investment restrictions have been a focal point of debate, with some financial experts warning that unclear implementation details could affect how families understand and use the accounts.
What People Are Saying
Speaking about the Trump Accounts, Mary Morris, CEO of Commonwealth Savers, told CNBC: “There is a lot of good stuff there, but there are still a lot of unknowns about how it’s going to work.
“There are more unanswered questions than answered at this point.”
Amira Boland, chief of staff at the New Practice Lab economic research group and a former lead for Federal Customer Experience at the Office of Management and Budget, told Newsweek: “Trump Accounts represent a generational opportunity to build wealth for American families—and with the pace of contribution commitments coming in, could quietly become the largest individual cash transfer program in U.S. history.”
The IRS says: “The funds in Trump Accounts must be invested in certain mutual funds or exchange-traded funds that track the S&P 500 or another index of primarily American equities.
“Amounts generally cannot be withdrawn from Trump Accounts before January 1st of the calendar year in which the child turns 18 years old.
“After that point, the account generally is treated as a traditional Individual Retirement Account (IRA) and generally is subject to the same rules as other traditional IRAs.”
A Treasury spokeswoman previously told Newsweek that Trump Accounts “will be a wealth-building game changer for hardworking families across America, in addition to President Trump’s historic working families tax cuts.”
Trump said: “Decades from now, I believe the Trump Accounts will be remembered as one of the most transformative policy innovations of all time.”
What Happens Next
H.R. 7737 will next be reviewed by the House Ways and Means Committee, where lawmakers may hold hearings or request additional analysis before deciding whether to advance the bill, according to congressional procedure.
Any change to Trump Account investment rules would also require coordination with the Treasury Department and the Internal Revenue Service, which are still finalizing regulations governing how the accounts operate, according to IRS notices.
The proposal is expected to feed into broader debates over how the program should balance simplicity, risk, and long-term growth as Trump Accounts begin enrolling families nationwide later this year.
