Treasury Moves to Bar ESG Criteria from ‘Trump Accounts’ Investment Portfolios

Marc Beckman, senior advisor to First Lady Melania Trump, is advocating for auto-enrollment options while discussing the rollout of the ‘Trump Accounts‘ initiative for youth financial growth.

Federal officials are establishing strict low-fee guidelines for ‘Trump Accounts’ that explicitly prohibit fund managers from using environmental, social, and governance (ESG) standards, according to Treasury Department details obtained by FOX Business on Thursday.

The regulatory exclusion of ESG options is designed alongside broader index requirements aimed at limiting administrative fees so young investors retain maximum returns.

“Corporate America has rejected ESG ideology, and we will not allow it to be a part of Trump Accounts,” Treasury Secretary Scott Bessent told FOX Business in a statement.

“These accounts exist to build financial security for America’s children, not to advance political activism or ideological agendas,” Bessent added.

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Treasury Secretary Scott Bessent told FOX Business the ESG restriction will help protect investors. (Reuters/Abdul Saboor/File Photo)

A Treasury Department official told FOX Business that proposed rules dictate eligible options must rely on objective financial benchmarks designed to track broad segments of domestic or international equity markets.

The operational framework seeks to offer families transparent choices focused primarily on asset diversification, low expense ratios, and long-term equity growth.

Critics of ESG investment models contend that evaluating corporate policy or governance structures alongside market metrics risks diluting bottom-line financial gains.

The policy reflects a broader national trend over recent years, during which several state treasuries and municipal pension boards have restricted public capital allocations to ESG-oriented funds over concerns regarding fiduciary returns.

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The Trump Accounts app features eight exclusive financial literacy modules. (U.S. Department of the Treasury)

More than 7 million families have created Trump Accounts in the month and a half following the program’s official launch on July 4, according to a Treasury spokeswoman.

Over 2 million of those account holders qualify for a $1,000 federal grant established under the One Big Beautiful Bill Act for children born between the start of 2025 and the end of 2028.

While families can open accounts for any child under age 18, those born outside the 2025 through 2028 window are ineligible for government seed deposits.

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Michael and Susan Dell announced a $6.25 billion contribution to seed Trump Accounts belonging to children under the age of 10. (Andrew Caballero-Reynolds/ AFP/Getty Images)

In addition to public funding, household deposits and pilot initiatives have directed more than $1.5 billion into these accounts since early July, according to Treasury figures.

That total stands separately from philanthropic commitments, led by a $6.25 billion gift from Michael and Susan Dell that provides $250 starter deposits for enrolled children under age 10.

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