To amend title 37, United States Code, to authorize the Secretary of Defense to make contributions to Trump Accounts as a bonus for a member of the Armed Forces who commits to continued service in the Armed Forces and to amend the Internal Revenue Code of 1986 to treat any such contribution in the same manner as a contribution made pursuant to an employer Trump account contribution program.

What it does

• •Authorizes the Secretary of Defense to make payments of up to $2,500 to Trump Accounts for qualifying children of Armed Forces members who reenlist, extend enlistment, or commit to continued service.
• •Allows covered members to allocate the bonus among multiple qualifying children's accounts.
• •Amends the Internal Revenue Code to treat Defense Department Trump Account contributions the same as employer-sponsored Trump Account contributions for tax purposes.

Why it matters

• •Provides a financial incentive mechanism to encourage military personnel retention through educational savings accounts for their dependents.
• •Establishes tax-favorable treatment for these Defense contributions, aligning them with private employer account contribution programs.

Who is affected

• •Members of the Armed Forces who reenlist or extend their service commitments.
• •Qualifying children (under age 18) of covered military members designated to receive Trump Account contributions.

What happens next

The bill was referred to the House Committee on Armed Services and the Committee on Ways and Means for consideration as of November 12, 2026.