25 governors back Trump Accounts for foster children
Why it matters: States could use the tax-advantaged accounts for youths aging out of care, but access rules and benefit impacts remain unresolved.
Twenty-five governors have pledged to let states open Trump Accounts for eligible foster children, extending the new savings program to a group that often leaves care with little financial support. The accounts launched July 4 and let family members, employers, charities and governments contribute, while babies born from 2025 through 2028 can receive a $1,000 Treasury deposit once an account is opened. For foster children, states would act as legal guardians. Supporters say the accounts could help youths build a cushion before adulthood, but advocates warn strict withdrawal rules and possible effects on eligibility for services could limit their value when young adults age out of care.