Last month we celebrated Oklahoma 529 Month, a reminder that saving for education can start early and grow over time. While the federal Treasury is developing the new “Trump account” program, it’s expected to launch next summer. This proposal will provide every U.S. citizen born between 2025 and 2028 with a $1,000 seed deposit in a newly created account. More details on how families can sign up are expected from the federal Treasury as the program is launched. Families will be able to contribute additional funds with money being invested in limited, low-cost index or mutual funds.
In September, I joined Connecticut State Treasurer Erick Russell and Tennessee Comptroller Jason Mumpower on a panel to discuss education savings programs. While Trump accounts will be Tennessee’s first introduction to this type of government funded program, Connecticut offers a robust Baby Bond program giving $3,200 to eligible children in a pooled trust for education, homeownership or to start a business. By contrast, Trump accounts would be universal, offering every child the same starting point. Both programs share a common goal: encouraging long-term saving and investment for future generations.
Oklahoma has seen the value of early investment firsthand. SEED for Oklahoma Kids (SEED OK), launched in 2007, gave selected newborns $1,000 in an Oklahoma 529 account. Now, 18 years later, we’ve seen those accounts mature, and we’ve learned that while seed money matters, education around the benefits of saving matters even more.
This lesson shows that programs work best when families are fully equipped with financial literacy. Without guidance, families may not know how to manage or maximize what they’ve been given. Tennessee emphasized the need to teach families how to steward education savings accounts, while Connecticut now requires financial education before recipients can access their funds. The Oklahoma Treasurer’s office provides financial literacy training, while the state offers 14 areas of personal financial literacy to grades 7 through 12.
Alongside Trump Accounts, recent federal policy changes are also expanding how families can use their 529 funds. Under the 2025 One Big Beautiful Bill Act, new rules taking effect in mid-2025 and early 2026 will make 529 plans more flexible. Families will be able to use funds for a wider range of K–12 expenses such as curriculum, tutoring, and educational therapies, with the annual limit doubled to $20,000 per student. They can also apply funds toward job training and postsecondary credentialing programs, and starting in 2026, the ability to roll over unused 529 funds into an ABLE account for individuals with disabilities will become permanent. These updates make 529s an even stronger tool for families investing in education and career readiness.
As Trump accounts take shape, states could play a vital role in helping families enroll, understand the accounts, and contribute over time. Whether at the state or federal level, success will be measured not by deposits alone, but by outcomes, education, training, entrepreneurship, and independence.
Programs like these provide a roadmap: seed money plants the idea, education waters it, and steady contributions allow it to grow. For families, the message is simple: start early, share its value, and contribute regularly. The funds are important, but the investment, care and education around them are what make them truly transformative.
