Trump Accounts Initially Excluded Foster Kids Until the First Lady’s Office Intervened

First lady Melania Trump announced updated guidance for the Trump Accounts program to make it easier for foster youth to participate through state child welfare agencies and foster youth representatives. The move addresses concerns that children in foster care could be excluded because the accounts must be opened by an “authorized individual,” a requirement that was not clearly defined for young people with changing guardians or custody arrangements. Child welfare advocates had warned that foster youth might be left out unless a practical process was created for them. The new guidance was developed after months of coordination among the first lady’s office, state governments, and the Treasury Department.

Trump unveiled the “Fostering the Future Accounts” initiative at the Treasury Department alongside Treasury Secretary Scott Bessent. The accounts are part of the broader Trump Accounts program, which is scheduled to officially launch on July 4. The program is available to U.S. citizen children with valid Social Security numbers. Under the standard version, children born between January 1, 2025, and December 31, 2028, may receive a one-time $1,000 federal pilot contribution. For foster youth, however, child welfare agencies cannot receive that federal seed money directly. Instead, a parent or foster parent may choose to direct the contribution to the child’s account if the child is expected to be their “qualifying child,” according to IRS guidance. States may also contribute federal survivor benefits and unobligated Temporary Assistance for Needy Families funds.

Officials said the updated framework is intended to ensure foster children are not excluded from a savings program designed to build long-term financial security. Approximately 400,000 young people are in foster care in the United States, according to the U.S. Department of Education. Bessent said one in five foster youth could face homelessness after aging out of the system, and only about half obtain gainful employment by age 24. Supporters of the initiative argue that access to an account with savings could help foster youth prepare for housing, education, or basic living costs as they transition into adulthood.

Under the new guidance, foster youth would be able to access the money in the account when they turn 18. Melania Trump described that access as a “first step toward personal independence.” The first lady has used her second-term public platform to focus attention on children in foster care, backing legislative and policy efforts aimed at supporting a group that advocates say has long been overlooked. Sixto Cancel, founder and CEO of the child welfare advocacy group Think of Us, said the issue was raised directly with her office, which responded quickly and worked to find a solution.

So far, 23 states, all led by Republican governors, have opted into the program, and the administration says efforts are continuing to encourage the remaining states to join. Treasury officials said they are providing additional guidance and support to state child welfare agencies to help maximize the benefit. For advocates, the policy change is seen as a meaningful step toward giving foster youth a financial foothold as they move toward adulthood and independence.