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Automatic enrollment could drive a sharp jump in account numbers

Under Trump Accounts, millions of children are expected to be automatically enrolled in the system starting Oct. 1. According to temporary rules released Tuesday by the U.S. Treasury Department, the move could lead to the opening of more than 60 million additional accounts in 2026 alone.

Treasury guidance says the automatic enrollment mechanism could add about 2 million new accounts to the system each year in the following years as well. Treasury Secretary Scott Bessent told the House Financial Services Committee on Sept. 15 that 7 million to 8 million children have enrolled so far, and that number is expected to rise to 70 million within a month once automatic enrollment begins.

What does the program's financial framework include?

Designed as a tax-deferred investment account, the program was launched on July 4. Under the plan, the Treasury Department is depositing a one-time $1,000 for children born between 2025 and 2028, with additional funding available for eligible families.

  • Current number of enrolled children: 7 million-8 million
  • Expected additional accounts in 2026: more than 60 million
  • Potential annual increase: about 2 million accounts

Why has participation remained limited among low-income families?

The main reason participation has been weak so far is that families had to actively sign up for the program. Enrollment in Trump Accounts required filing IRS Form 4547 with a tax return or applying through TrumpAccounts.gov.

Studies show that this approach has limited access, especially for low-income families. According to a recent report by the national nonprofit Commonwealth, only 5% of low- and middle-income families earning up to $80,000 a year had opened a Trump Account.

Plans for enrollment at the time of birth registration

The Social Security Administration previously said it was working on a process that would allow newborns to be enrolled while their Social Security number applications are submitted during hospital birth registration. Experts say this model could reach the vast majority of parents and children.

Capacity and coordination questions emerge in implementation

Even so, officials stress that the program's success will depend on more than automatic enrollment alone. Experts say additional work will be needed to help families use the accounts after enrollment, sustain contributions and raise awareness.

Meanwhile, recent budget, resource and staffing cuts at the IRS have raised questions about implementation capacity. In July, Treasury said Frank Bisignano, the IRS chief executive and Social Security Administration commissioner, would oversee the expansion process. According to an IRS official speaking to CNBC, a new program-specific appointment was also made on Friday: Joseph Velli, who has worked at Bank of New York and Convergex Group, will join Bisignano as a senior adviser.

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