Dear Colleague Letter on Fostering the Future Accounts for Youth in Foster Care

Dear Colleagues,

Through the leadership of First Lady Melania Trump and her Fostering the Future initiative, children and youth in foster care now have a pathway to benefit from Trump Accounts. This is an exciting opportunity to strengthen the long-term financial well-being of children and youth in foster care. Within the foster care community, these accounts may be referred to as “Fostering the Future Accounts,” reflecting on Mrs. Trump’s commitment to helping youth in foster care build a stronger future.

The Trump administration’s goal is for all States to open Trump Accounts for eligible youth in foster care by December 2027. Trump Accounts represent an innovative, federally backed, tax-advantaged savings vehicle designed to help young people build assets, strengthen financial stability, and create pathways to future opportunity.

We are encouraged by the strong momentum already underway across the country. To date, 23 states have pledged to work toward opening Trump Accounts for eligible youth in foster care and to develop the policies and operational procedures necessary to support account management and continuity. We applaud the leadership of these Governors and invite every state and territory child welfare agency to join this effort.

For many young people in foster care, access to financial assets can be transformative. Trump Accounts provide an opportunity to preserve resources, support future educational and housing goals, and help youth build a stronger foundation as they transition to adulthood. Because these accounts remain the property of the child, states have an important role in ensuring eligible youth are enrolled, accounts are appropriately managed while youth are in care, and account responsibility is transferred smoothly when custody arrangements change.

To support states in this work, the Department of Health and Human Services’ Administration for Children and Families (HHS/ACF) and the Department of the Treasury are jointly releasing the attached Frequently Asked Questions (FAQs). The FAQs address a range of topics, including:

• How state child welfare agencies can establish Trump Accounts for eligible children in foster care;
• Procedures for transferring account responsibility when children reunify with family, are adopted, enter guardianship, or otherwise exit foster care;
• The treatment of survivor benefits deposits;
• If states can deposit unobligated Temporary Assistance for Needy Families (TANF) funds into a Trump Account;
• Opportunities to claim allowable Title IV-E administrative costs related to account administration; and
• How Trump Accounts are treated for purposes of Title IV-E eligibility and related asset considerations.

The attached FAQs were developed to provide practical guidance and answer many of the questions ACF received from state leaders. Parallel guidance has been issued on the use of TANF for Trump Accounts. We encourage you to review the FAQs and TANF guidance carefully with your program, fiscal, and legal teams.

In addition, HHS/ACF and Treasury will host a national Office Hours session for Governor’s staff and state child welfare leaders on June 23 at 1:00 PM ET. States, tribes, and territories can register for the Office Hours session here .

During this session, staff from both agencies will provide an overview of the Fostering the Future Accounts announcement, discuss implementation considerations, and answer any outstanding questions from states. We welcome any and all questions and encourage participation from child welfare, fiscal, policy, and legal staff.

The Fostering the Future Accounts announcement reflects our shared commitment to ensuring that young people in foster care have the same opportunities to build financial security and long-term economic mobility as their peers. By working together, we can help youth in foster care enter adulthood with assets, stability, and greater confidence in their futures while ending the orphan tax once and for all.

Thank you for your continued leadership and partnership on behalf of children, youth, and families. We look forward to working with you to make Trump Accounts a reality for every eligible young person in foster care.

Sincerely,

/s/

Alex J. Adams
Assistant Secretary
Administration for Children and Families 
U.S. Department of Health and Human Services