Policy
Citi Foundation announces $5 million grant to Prosperity Now to help American households build early savings for their children
NEW YORK, June 30, 2026--The Citi Foundation today announced a $5 million grant to support Prosperity Now’s new ABC Initiative (Asset-Building for Children), a program to advance awareness and adoption of existing and emerging child savings opportunities, with a focus on the new Trump Accounts, also known as 530A accounts, among low-income households across the U.S.
About this update from Citigroup, Inc.
NEW YORK, June 30, 2026--(BUSINESS WIRE)--The Citi Foundation today announced a $5 million grant to support Prosperity Now's new ABC Initiative (Asset-Building for Children), a program to advance awareness and adoption of existing and emerging child savings opportunities, with a focus on the new Trump Accounts, also known as 530A accounts, among low-income households across the U.S. Child-focused savings and investment accounts help families begin building wealth early, supporting pathways for education, economic mobility and long-term financial security. The new Accounts, established under the One Big Beautiful Bill Act of 2025 and signed into law by President Trump, are tax-deferred investment accounts featuring a $1,000 seed contribution from the federal government for eligible U.S. children under 18. The Treasury Department announced in late May 2026 that nearly 6 million children had signed up for these Accounts, or nearly 40% of eligible children, according to the Urban Institute. With the $5 million grant, the ABC Initiative will deliver information about the Accounts and early wealth building strategies directly to American households. It will also provide specialized training and resources on the Accounts to IRS-sponsored Volunteer Income Tax Assistance (VITA) providers, who deliver free federal and state tax preparation services for eligible low-income households. One way to open an Account is through the tax filing process, and VITA providers are well-positioned to increase awareness and ensure that eligible families enroll in this new child savings opportunity. "The Citi Foundation has long believed that investing in child savings strategies is a powerful way to enhance economic mobility and create stronger, more financially resilient families and communities," said Brandee McHale, Head of Community Investing and Development at Citi and President of the Citi Foundation. "Through this grant, we aim to make a tangible difference in the lives of countless families across the U.S. and continue our work in setting up young people for economic success from the moment they are born." With the anticipated launch of the Accounts in July 2026, the ABC Initiative will be implemented over the next two years, providing targeted support for the 2027 and 2028 tax seasons as well as year-round resources and learning opportunities on early wealth building acco...