US Treasury Department proposes rules to exclude ESG funds from Trump Accounts

The US Treasury Department and the IRS have proposed new regulations that would formally ban ESG-focused funds from Trump Accounts, the tax-advantaged savings vehicles created for American children under the One Big Beautiful Bill Act. The proposed rules, announced on August 20, represent the first detailed articulation of what parents can and cannot invest in when saving for their kids through the program. What Trump Accounts actually are Trump Accounts, formally known as 530A accounts, are savings vehicles designed for children born between 2025 and 2028. Each account starts with a $1,000 government seed contribution and allows annual contributions up to $5,000, a cap that will adjust for inflation over time. No withdrawals are permitted until the beneficiary turns 18. After that, distributions get taxed like a traditional IRA. The accounts officially launched on July 4, 2026, though sign-ups began earlier. By late January 2026, more than 500,000 families had already enrolled. The eligible investment lineup includes the State Street SPDR Portfolio S&P 500 ETF (SPYM), the iShares Core S&P 500 ETF (IVV), and the Vanguard Total Stock Market ETF (VTI). To qualify, a fund must...