Melania Trump announces a new savings account for youth in foster care

Ahead of the official launch of Trump Accounts, First Lady Melania Trump announced a new savings and investment vehicle in conjunction with the U.S. Department of Treasury that's geared toward children in foster care. "For the first time, children in foster care will have access to a dedicated investment and savings vehicle," she said in remarks. "Education and savings accounts are the first steps toward personal independence." There are more than 400,000 children in foster care in the U.S., and many are considered financially vulnerable, according to federal data. Each year, more than 23,000 youth age out of the foster system without a permanent family, according to the National Foster Youth Initiative, a youth development organization. Those young adults are largely on their own and likely to lack access to financial resources, according to a 2024 white paper by The Foundation for Research on Equal Opportunity, a nonpartisan think tank. "They don't have parents to call when the rent is overdue, the tuition bill arrives, or they need help getting to a job interview," the researchers wrote. The new savings program was announced Thursday at an event with the first lady and Treasury Secretary Scott Bessent. It is the latest update to a broader "Fostering the Future" initiative started by the Trump administration in the fall. Separately, Bessent has also been promoting Trump Accounts, also known as Section 530A accounts, which were created last year as part of President Donald Trump's "big beautiful bill." Those tax-deferred investing accounts are geared specifically for children under age 18 and include a one-time $1,000 deposit from the Treasury for kids born between 2025 and 2028. "When Trump Accounts launch on July 4, every eligible child will be able to participate, including those for whom the state is a legal guardian," Bessent said Thursday.