Treasury and IRS Release Major Rule on Trump Accounts
The Department of the Treasury and the Internal Revenue Service issued temporary regulations governing new “Trump accounts,” affecting an estimated 73 million children across 44 million families, according to a report by the Government Accountability Office. The rule took effect immediately upon its September 30, 2026, publication in the Federal Register at 91 Fed. Reg. 61705.
Federal regulators bypassed the standard 60-day congressional review delay and public comment period by invoking good cause exceptions. The agencies stated that delaying implementation would create administrative inconsistencies, postpone contributions, and stall financial transfers. The Internal Revenue Service promulgated the framework under sections 408, 530A, and 7805 of title 26 of the United States Code, alongside section 70204 of Public Law 119-21, which was enacted on July 4, 2025.
OMB reviews regulation designated as economically significant
The Office of Information and Regulatory Affairs designated the regulation as economically significant, prompting a review by the Office of Management and Budget. While the Internal Revenue Service prepared a comprehensive cost-benefit analysis projecting billions of dollars in annual class contributions, the agency determined that the Regulatory Flexibility Act does not apply to this action. The Unfunded Mandates Reform Act threshold of $100 million adjusted for inflation was not met regarding effects on state, local, or tribal governments.
The framework establishes general requirements for setting up initial accounts, automatic enrollment procedures managed by the Secretary of the Treasury, and qualified general and stock contributions. Although the Internal Revenue Service identified information collection requirements under the Paperwork Reduction Act, it determined that the directive carries no federalism implications under Executive Order 13132.
Frequently Asked Questions About Trump Accounts
Who qualifies for an automatic Trump account?
The temporary regulations apply to 73 million children residing within 44 million families nationwide, utilizing automatic enrollment mechanisms overseen by the Secretary of the Treasury.
When did the regulations take effect?
The rule took effect immediately on September 30, 2026, following its publication in the Federal Register, after the Treasury and the Internal Revenue Service waived standard notice-and-comment procedures under good cause provisions.
What statutory authority governs the new accounts?
The Internal Revenue Service issued the directive pursuant to sections 408, 530A, and 7805 of title 26 of the United States Code, as well as section 70204 of Public Law 119-21 enacted on July 4, 2025.
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