Twenty-five governors have pledged to open Trump Accounts on behalf of eligible foster children, following an initiative announced in early June by First Lady Melania Trump in conjunction with the Treasury Department. The accounts — tax-advantaged investment vehicles that launched on July 4 — are designed to give this vulnerable population a financial foothold when they age out of the system. Yet advocates and legal experts warn that unresolved rules around withdrawals, federal benefit caps and means-tested eligibility could blunt the program’s impact.
En bref
- —25 governors pledged to open accounts for foster children
- —Early withdrawal before age 59½ triggers a 10% penalty
- —~27,000 foster kids receive Social Security or SSI benefits
331,747 children in foster care stand to gain a first financial safety net
There were an estimated 331,747 children in foster care in 2025, according to data from the Department of Health and Human Services. Of those, roughly 15,000 aged out of the system that year — meaning they transitioned to legal adulthood, in most states at age 18, with limited institutional support behind them.
