60 million children got Trump Accounts. Fewer than 1% were claimed in the first week

The U.S. Treasury recently opened investment accounts for more than 60 million children, with $1,000 federal deposits granted to those born between 2025 and 2028. However, only a fraction of these accounts, estimated at less than 1%, have been claimed within the first week of availability. The accounts, managed by BNY as the Treasury's financial agent and Robinhood as broker and initial trustee, are funded through low-cost U.S. stock index funds.

Michael and Susan Dell have contributed $250 to nearly 25 million of these accounts. Treasury benefits tax counsel Helen Morrison emphasized that account claim is crucial for the $1,000 federal seed to arrive and for potential contributions from relatives and employers. Two design flaws in the program could result in unclaimed funds.

The first is an unclaimed account where a parent fails to claim it, leading to the federal money never being deposited. The second is an account funded initially but lost at 18, requiring a young adult to locate and prove ownership. Britain's Child Trust Fund, similar to the U.S. program, resulted in over a fifth of matured accounts remaining unclaimed, amounting to roughly £1.9 billion.

The custodians of these accounts should prioritize maintaining ownership information to avoid becoming a liability.