Big Take Trump Accounts Promise Free Money. What's the Catch?
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Feb 12, 2026 
Darrick Hamilton, economist who proposed federal baby bonds, and Ben Steverman, Bloomberg reporter on economic policy, unpack the new Trump Accounts. They explain how the accounts are seeded, who can enroll, investment options and tax rules. Conversation covers origins versus baby bonds, who stands to benefit, philanthropy and employer roles, and political messaging around the program.
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What Trump Accounts Are
- Trump Accounts are federal investment accounts for children that lock funds until age 18 and then become IRAs.
- The program seeds accounts with $1,000 for kids born 2025–2028 and aims to leverage employers, philanthropists, and family contributions to grow balances.
Administration And Investment Unsettled
- The Treasury will administer accounts and invest deposits in low-fee index funds, but trustee selection and operational details remain undecided.
- Implementing millions of accounts is technically complex and the government must choose capable managers and systems.
Origin Story Of Baby Bonds
- Darrick Hamilton described baby bonds as trust accounts to democratize wealth and give young adults a nest egg.
- He traced his idea to seeing how elite education and family resources shaped his own life path.