Representative Blake Moore (R-UT) has introduced the Foster Youth Investment Act, H.R. 9920, which aims to help children in foster care build financial security by expanding contribution options for their Trump accounts.
The bill would amend IRC § 530A, the provision governing Trump accounts, to allow philanthropic organizations and states to make unlimited contributions directly to the accounts of children in foster care.
How the bill changes contribution rules
Trump accounts, created by the One Big Beautiful Bill Act, are tax-favored investment accounts for children under 18. While family, friends, and employers can contribute up to a combined $5,000 annually, a special rule under IRC § 530A(f) allows for unlimited “qualified general contributions” from government entities and certain tax-exempt organizations.
Currently, these unlimited contributions can only be made to a “qualified class” of children, a designation based on age or geography. Because children in foster care are not a distinct qualified class, states and philanthropic groups wanting to make targeted investments for them face contribution limits.
The Foster Youth Investment Act would amend the Tax Code to add a new qualified class consisting of all account beneficiaries who are an “eligible foster child” under IRC § 152(f)(1)(C) or who are under the custody, supervision, or guardianship of a State or Indian tribal government. This change would remove existing barriers and permit states and charities to make unlimited contributions directly to the accounts of foster youth.
A larger push for foster youth access to Trump accounts
Moore said the bill builds on First Lady Melania Trump’s Fostering the Future initiative. That initiative calls for modernizing the child welfare system and developing partnerships between the private sector and academic institutions to create education and employment opportunities for those aging out of foster case.
In June, the Treasury Department announced that it would allow state, territorial, and tribal child welfare agencies to open Trump accounts for children in their legal guardianship. Representative Moore’s legislation is the next step in this effort.
It also comes after multiple commenters raised concerns about how Trump accounts would work for children in foster care. Those comments came in response to December 2025 guidance (Notice 2025-68) and a March 2026 proposed rule. Groups including the Aspen Institute, the Annie E. Casey Foundation, and the Youth Law Center cautioned that foster children could lose out on the benefits unless Treasury provides for automatic enrollment or grants child welfare agencies authority to open a Trump account on behalf of children in their care.
Treasury responded to those concerns on June 11, stating “a child welfare agency of a state, territorial, or tribal government that is the legal guardian of an eligible child who has a Social Security Number and does not already have an account may elect to open an initial Trump Account for that child.”
However, child welfare agencies are also bound by state law. Treasury explains in its June statement that states may need to adopt policies authorizing child welfare agencies to open Trump accounts on behalf of eligible children.
For more on current Trump account contribution limits, see Checkpoint’s Federal Tax Coordinator 2d ¶ A-4654.
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