Automatic Enrollment: Closing the Gap for America’s Children
A New Pathway for Foster Youth
Fostering the Future is the fix – On June 11, First Lady Melania Trump alongside Treasury Secretary Scott Bessent unveiled Fostering the Future Accounts, an innovative initiative designed to extend Trump Account benefits to approximately 330,000 children currently in the foster care system across the United States. This program enables state child welfare agencies to establish accounts on behalf of these vulnerable youth, ensuring they receive the same financial opportunities as their peers.
Twenty-three state governors have already committed to participating in the program. Arkansas Governor Sarah Huckabee Sanders took the lead, announcing her state’s participation several days before the federal announcement. Arkansas plans to enroll roughly 4,300 foster children automatically, eliminating the need for individual sign-ups. This proactive approach guarantees that no child falls through the cracks.
Opening an account can be challenging, especially for youths who must enter foster care. This program helps close that gap and ensure that all children can begin to save for their future.
The Arkansas child welfare agency’s statement highlights a critical insight for Trump Account implementation. When enrollment processes prove difficult, the government should act on behalf of the child rather than expecting parents to navigate complex procedures alone.
The Problem with Opt-In Systems
Traditional opt-in enrollment models consistently disadvantage families with limited resources. Consequently, the children who would benefit most from these accounts remain the least likely to participate. Fostering the Future demonstrates that federal and state governments can collaborate effectively to achieve comprehensive enrollment rates.
Trump Accounts officially began on July 4, with initial $1,000 deposits reaching eligible children born between 2025 and 2028. This represents a significant national investment in child wealth building. Each account provides access to multiple resources: the federal seed deposit, employer matching contributions from corporations such as JPMorgan Chase and Intel, Michael and Susan Dell’s $6.25 billion philanthropic commitment, and increasingly robust state-level contributions.
However, children receive nothing without an account. The current enrollment process requires parents to complete IRS Form 4547 or register online at TrumpAccounts.gov, verify their identity, and navigate a multi-step procedure. By late May, nearly 6 million children had enrolled, but more than 67 million eligible children remained unenrolled.
Lessons from Past Experiments
This enrollment gap was entirely foreseeable. The SEED for Oklahoma Kids experiment, the nation’s longest-running randomized trial of children’s investment accounts, provides compelling evidence. Washington University has conducted this study for 18 years. When Oklahoma’s state treasurer opened accounts automatically at birth, fewer than one in a thousand families opted out. When enrollment remained with families in the same state, only about 6 percent opened accounts.
Maine presents a similar pattern. Parent-dependent enrollment reached just 40 percent of eligible newborns. Automatic enrollment achieved 100 percent coverage.
Fostering the Future shows the path forward for the other 67 million children. Foster children were left out because no parent was positioned to act for them. Millions of other children are left out because forms, identity checks, and busy lives get in the way.
A Unified Solution
The underlying causes differ, yet the outcome remains the same: children without accounts through no fault of their own. The solution is equally uniform. If the government can enroll every foster child, it can enroll every child in America. The necessary tools already exist; what remains is implementing automatic enrollment with opt-out provisions.
The Social Security Administration recently announced plans to collaborate with states to integrate Trump Account enrollment into hospital forms used for newborn Social Security number requests. This integration could facilitate automatic account creation at birth.
States are actively engaging across every dimension of policy design. Oklahoma’s governor signed legislation appropriating $12.5 million to deposit $250 into eligible children’s Trump Accounts. Alabama passed similar legislation excluding Trump Account contributions from state taxable income.
State treasurers’ offices, which have administered children’s college savings programs for decades, are exploring expanded roles as account trustees. California Governor Gavin Newsom utilized Tax Day to encourage families to claim both CalKIDS, California’s state children’s savings program, and the federal $1,000 deposit. This comprehensive approach encompasses funding, tax relief, account management, outreach, and now enrollment itself.
States have proven themselves as leaders in early wealth building. California, Pennsylvania, Maine, and Nevada already operate statewide children’s savings accounts with automatic enrollment mechanisms. These existing frameworks provide a foundation for scaling Trump Account participation nationwide, ensuring that every child—regardless of circumstance—has the opportunity to build financial security for their future.
