The Citi Foundation, the philanthropic arm of banking giant Citi, has pledged a $5m grant to Prosperity Now to power its newly launched ABC Initiative (Asset-Building for Children), which aims to expand take-up of child savings schemes among lower-income families in the US.
The programme will centre on raising awareness of both established and emerging savings vehicles for children, with particular emphasis on the recently created Trump Accounts, also referred to as 530A accounts.
These tax-deferred investment accounts were introduced under the One Big Beautiful Bill Act of 2025 and come with a $1,000 federal seed payment for qualifying American children under the age of 18. According to the Treasury Department, almost six million children had enrolled by late May 2026, which is close to 40% of those eligible, based on Urban Institute figures.
Using the grant, the ABC Initiative will bring information on the accounts and early wealth-building approaches directly into US homes. It will also equip IRS-sponsored Volunteer Income Tax Assistance (VITA) providers, which offer free federal and state tax preparation to qualifying low-income households, with tailored training and materials. Since one route to opening an account is via tax filing, VITA providers are seen as ideally placed to drive enrolment.
With the accounts expected to go live in July 2026, the initiative will run over two years, offering dedicated support through the 2027 and 2028 tax seasons alongside ongoing resources on early wealth-building accounts.
The Citi Foundation promotes economic progress in low-income communities globally, investing in financial inclusion, youth employment and community development. Its “More than Philanthropy” model draws on the expertise of Citi and its workforce to further its mission.
The grant extends more than two decades of work by Citi and its foundation on early wealth-building, spanning partnerships with nonprofits, municipalities and educational institutions, foundational research, and support for the first publicly funded universal children’s savings account programme. In February 2026, Citi also pledged to match the government’s seed contribution for children of eligible US employees born between 1 January 2025 and 31 December 2028.
Citi head of community investing and development and Citi Foundation president Brandee McHale said, “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.
“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.”
Prosperity Now president and CEO Marisa Calderon said, “Building a stronger financial future for children starts with the basics: trusted relationships, accessible opportunities and the ability for families to act when those opportunities arise.
“The ABC Initiative is about strengthening those building blocks. With the Citi Foundation’s support, we can help VITA providers expand the work they are already doing to connect more families to child savings opportunities and turn moments like tax time into meaningful steps toward economic opportunity and long-term financial security.”
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