Treasury Proposes Rules for Eligible Investments in Trump Accounts

Posted: Aug 26 2026

The Treasury Department has released proposed regulations to limit eligible investments for Trump Accounts to choices with low expense ratios and to exclude products with “excessive fees or unnecessarily complex strategies.”

The tax package passed by Congress last year created a new form of individual retirement account for children under 18. It also set limits on eligible investments in the accounts, such as by excluding mutual funds and exchange-traded funds that use leverage. The proposed regulations would set rules for determining whether an investment qualifies as eligible under the law and provide procedures for trustees to make that determination.

“By emphasizing straightforward, low-cost investment options, the proposed guidance would allow children to benefit more fully from decades of compound growth and ensure that a greater share of investment returns remain in their accounts,” Treasury said in a statement.

Treasury previously announced that State Street SPDR Portfolio S&P 500 ETF (SPYM) would be the default investment for all Trump Accounts. The department also designated four low-cost index ETFs that may be chosen for investment by a parent or other responsible party. The proposed rulemaking comes roughly a week after Treasury announced proposed rules to establish guidance for employer-sponsored programs for contributions to Trump Accounts.

To view the proposal, visit: https://public-inspection.federalregister.gov/2026-17123.pdf