(The Center Square) – U.S. Sens. John Fetterman and Dave McCormick teamed up on Monday to encourage Pennsylvania families to enroll their children into accounts they believe can help build long-term financial security.
“He's a Republican, I'm a Democrat, but we're here today because we want all of you one day to be all millionaires,” Fetterman said at the Alan Horwitz "Sixth Man" Center in Philadelphia. “We want you to have your financial security in life. And here we are working together to talk about these things: what's known as the Trump accounts.”
Trump Accounts are new savings accounts for children created by the One Big Beautiful Bill Act, signed into law on July 4, 2025. One year after signing that legislation, the accounts will open for enrollment on Saturday.
“They're a way to make sure everybody takes advantage into growing the economy, and so it's a great step forward for our country,” McCormick said. “It's not a partisan issue. In other words, there's no politics. The idea is to create opportunity for every single person.”
All U.S. children under 18 with a valid Social Security Number are eligible to establish a Trump Account, according to its website, adding that parents or legal guardians can open and manage accounts on behalf of their children.
Families, friends and employers can contribute up to $5,000 per year per child.
Babies born from Jan. 1, 2025 to Dec. 31, 2028 will get $1,000 from the Treasury Department to start their accounts.
McCormick was asked by reporters about the prospect of making the $1,000 deposit permanent.
“I think this is one of many things that we need to do to think about how we address a fundamental problem, which is we have a growing concentration of wealth in our country,” he responded. “In fact, in the last 15 years, it's been the best 15 years in modern history, maybe in the history of humanity, for people that had assets.”
“So, what this is attempting to do is create a mechanism for wealth creation for everybody, no matter where you start, everybody has the opportunity,” he continued. “And so I think making these permanent, but also thinking about other mechanisms, like for example the Child Care Tax Credit, which we also passed in the Working Families Tax Cut Act, those are the mechanisms by which we're going to be able to transfer wealth from people that have had lived the American dream and been very fortunate to the people that have less opportunity.”
Brad Gerstner, Founder of Invest America, added that since the Invest America Act was embedded in the reconciliation bill, the accounts do not need to be reauthorized.
“It's just the amount of money going into the accounts that will need to be reauthorized,” Gerstner said, “which seems like a reasonable check every four years: check in and say, ‘are we putting the right amount of money’?”
Fetterman, who was joined at the event by his wife, Gisele, said he will be signing his children up for Trump accounts.
“There's a name involved that might turn or make people skeptical,” Fetterman said. “Do not fall into that political trap, you know, this is a valuable thing.”
“This isn't some radical thing,” the Democratic senator later added to reporters. “This is a well-established kind of a vehicle. You don't have to overthink it.”
While the program provides a federal seed investment of $1,000 for American children born between Jan. 1, 2025, and Dec. 31, 2028, McCormick’s office said that children outside the federal eligibility window may also claim a $250 investment contribution through the Michael and Susan Dell Foundation, which is available to children 10-years-old and younger living in households at or below $150,000 in median family income.
In Pennsylvania, McCormick’s office said, 1.4 million kids are eligible for $250 or more through federal seed investment and the Michael & Susan Dell Foundation.
Speaking to reporters following the speech, Gerstner explained at the age of 18, under the current legislation, those enrolled would be able to withdraw up to 25% of the funds, some of which could pay for college, buy a home, or start a business.
“And the rest rolls automatically into an IRA,” Gerstner said. “So, a retirement account.”
“Under the IRA rules, you can take it out for emergencies and other things, but for the most part, the expectation is that a portion of this will compound and a portion can be spent at 18 in order to improve their lives,” he added.
The Trump Account website notes that withdrawals may be subject to restrictions and would be taxed at ordinary income rates.
Gerstner explained that no fees will be charged to the kids who participate in these accounts.
“Our financial system is littered with hidden fees,” he said. “These accounts are lifetime free investment accounts for kids. There are no fees on the front end, there are no fees on the back end.”
Gerstner said that everybody who signs up for the account has to go through the IRS ID.me process, noting that you have to have a valid Social Security number to have an account.
“Your parents don't have to have Social Security numbers, but the child has to have a Social Security number,” he said. “And then the second thing, when you claim the account, you have to go through an ID verification process that anybody who claims any money from the federal government has to go through.”
Gerstner also emphasized the bipartisan nature of this program, saying that he’s going to be in New Jersey on Wednesday to be with U.S. Sen. Cory Booker, D-N.J., who he described as a “big supporter of this.”
“It is a very big bipartisan tent, and I think the reason for that is because people know we have to make this dead easy, automatic for every kid,” Gerstner said.
Parents interested in opening a Trump Account for their children, who are eligible, can do so using IRS Form 4547.
“You can do this when you file your taxes or by submitting the form through the secure IRS website called Individual Online Accounts, or IOLA,” written on the TrumpAccounts.gov.
Those with Trump accounts can manage it through a mobile app or via TrumpAccount.com to login. Eligible individuals will be able to activate, track, and manage their accounts through this.
Anyone with questions about Trump Accounts are encouraged to call the Trump Account call center at 866-USA-4547.
