Trump predicts ‘Trump Accounts’ will limit spread of socialism, communism

President Trump said Wednesday his administration’s new investment accounts for children will have a “huge effect” in reducing positive views of socialism and communism among young Americans.

During an event in the Oval Office promoting the “ Trump Accounts ,” the president said children will be “watching their accounts” grow until gaining control over them upon turning 18.

Children will now be automatically enrolled in the initiative, which the administration created under the One Big Beautiful Bill Act that Trump signed into law in July 2025.

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The auto-enrollment will result in more than 60 million additional kids having an account, per the Treasury Department. The president said Wednesday that nearly 8 million children already have an account.

“Long term, I think it’ll have a huge effect on … [views of] socialism, communism,” Trump predicted. “This is really the alternative, and it’s a great alternative.”

Children born from the start of 2025 through 2028 will receive $1,000 from the federal government in their accounts, though parents must first claim the child’s auto-enrolled Trump Account to receive the contribution.

Once the child turns 18, their account will function as a traditional individual retirement account.

The federal government will also invest the accounts in one of five low-cost exchange-traded funds, which Treasury Secretary Scott Bessent said will contribute to young Americans learning about the stock market.

“I think this is going to be a real-time financial literacy project,” Bessent said in the Oval Office.

Sen. Ted Cruz (R-Texas), who was at the White House for the event, said the accounts will be one of the “biggest parts” of Trump’s legacy.

“We are creating a whole new generation of capitalists,” the Texas Republican remarked.

The president and GOP lawmakers have attacked Democrats over the recent crop of left-wing candidates winning primaries across the country , claiming it is evidence of a “communist” takeover of the party.

According to a recent Gallup poll , 43 percent of Americans surveyed had a positive view of socialism — the highest mark the firm has seen since 2010. Among respondents ages 18-34, 57 percent viewed socialism positively.