WASHINGTON–While credit unions still waiting to find out when they will be eligible to participate, NCUA Chairman Kyle Hauptman is urging CUs to prepare to take part in the new “Trump Accounts” program, which provide tax-deferred accounts for youth under age 18, saying the agency is also “eager to explore new ideas.”
During a Financial Literacy and Education Commission (FLEC) meeting on the new accountscreated by HR 1, at which Hauptman and NCUA officials were present, Treasury Secretary Scott Bessent called on agencies to “mobilize around Trump Accounts by aligning programs, sharing expertise, and integrating these accounts into your financial education, outreach, and service efforts.”
As the CU Daily has reported, Treasury has said the accounts will be fully operational for family, employer, and other qualified contributions after July 4. Under 2025’s HR 1, the tax-deferred accounts can be established for children under 18. Those born between 2025 and 2028 are to receive a $1,000 initial seed contribution from the Treasury, which is invested in U.S. equity index funds to build wealth for future use.
What About Credit Unions?
But credit unions are not initially permitted to participate in the program. As the CU Daily reported here, during congressional testimony last week Bessent was asked when credit unions and other community financial institutions could participate, and he responded, “Initially, there will be one master custodian for the accounts. So initially, these small banks will not be able to participate. Eventually the holders of the accounts will be able to migrate out to designated institutions. I think we are prepared for a flood of signups, and then they will go live on July 5, and the goal is the lowest possible fees on these index funds.”
The credit union trade groups have been pressing Treasury to provide more information on when CUs can participate.
In his statement to the FLEC meeting, Hauptman, said, “There’s a lot to like about Trump Accounts, including how easy it is to start the process when filing your taxes. These accounts were clearly designed with behavioral economics in mind. That is to say, things that are easier to do are more likely to get done. Trump accounts also turn all these kids into investors. The more Americans that identify as investors, the better off we are. Investing done by regular people turns Marxism on its head: the proletariat is the supplier of capital, and the owner of the means of production.
“But I think my favorite part of these accounts are all these children learning about compound interest,” Hauptman continued. “A high-school senior may learn that $1000 was deposited when they were born, and ask, ‘Wait, if it was just $1000, why do I have $5,000 now?” And they’ll learn a powerful lesson about the magic of compound interest.”
Hauptman also listed the ways credit unions participate in and support financial literacy efforts.
‘Eager to Explore’
“Looking ahead, NCUA is eager to explore new ideas that build on this momentum, like Trump Accounts,” Hauptman said. “We look forward to hearing how credit unions can participate in opportunities like this to engage future generations in meaningful ways, ensuring that financial security is not an abstract goal but an attainable reality. By bringing together federal agencies, FLEC ensures that consumers receive consistent, educational, and actionable resources. This collaboration is especially important as we confront the ever-growing threat of financial fraud and scams.”
Hauptman’s full statement can be found here.
