Treasury to Offer Tax-Deferred Accounts With $1,000 Seed Money for Some Foster Children
The accounts will provide a one-time $1,000 Treasury deposit and tax-deferred investing for children under 18. They launch July 4 as part of the administration's Fostering the Future initiative.
thehindu.comU.S. Department of the Treasury. The accounts are tax-deferred investing accounts for children under age 18 and include a one-time $1,000 deposit from the Treasury for kids born between 2025 and 2028.
"For the first time, children in foster care will have access to a dedicated investment and savings vehicle," the first lady said in remarks. Trump Accounts are scheduled to launch on July 4. " The announcement occurred at an event attended by First Lady Melania Trump and Treasury Secretary Scott Bessent.
The new savings program is the latest update to the "Fostering the Future" initiative started by the Trump administration in the fall. More than 23,000 youth age out of the foster system each year without a permanent family, according to the National Foster Youth Initiative.
Those young adults are largely on their own and likely to lack access to financial resources, according to a 2024 white paper by The Foundation for Research on Equal Opportunity.
"They don't have parents to call when the rent is overdue, the tuition bill arrives, or they need help getting to a job interview," the researchers wrote.
