(This is in contrast to other similar philanthropic contributions which can often be made with nearly no taxes or fees.)

Combined with other implied taxes due to the tax treatment of contributions and of 530A accounts in general, modest contributions from philanthropy or state gov'ts may lose nearly 50% of their value to taxes and fees.

Additionally, there are fees for contributions. Treasury's draft guidance indicates an administrative charge of at least $25 per contribution will be levied on general philanthropic contributions to accounts in the near term.

Moreover, as written, IRC 6434 creates a set of U.S. citizen children who are rendered ineligible for the $1,000 because no guardian is eligible to claim them.

The draft guidance generates significant administrative complexity without a clear policy purpose, and raises the specter of damaging enforcement actions against guardians who mistakenly believe they are entitled to open accounts on behalf of their children.

Second, there are arcane rules for which guardians can open an account and claim the $1,000. The set of guardians eligible to open a 530A account and to claim the $1,000 are not the same.

But the statute as written appears to prevent the automation of the $1,000 payment entirely. Moreover, Treasury's existing draft forms and guidance not only contain no automation plans, but appear to preclude adding automation in the future.

First, there is no clear path to automatic enrollment. Evidence suggests automatic enrollment is critical to near-universal take-up. Data already exists at the IRS to automate account creation and $1,000 deposits for most children

Many policy and advocacy groups have been cautiously supportive of the 530A program, and that, flawed or not, this is a foundation we can build on. In reviewing the statute and proposed implementing regs, CTR has identified risks for damaging public perceptions of & belief in a worthy public program

You may have caught some of the press around these accounts last week following the White House's press conference (yes, Nicki Minaj was there and did speak): bsky.app/profile/vani...

Thankful we have @debtcollective.bsky.social to stand up for borrowers and provide resources when the CFPB is treating people’s financial lives like this

Here, the CFPB didn’t even meet its congressional mandate to release its student loan ombuds report in 2025. Instead it published a fifteen page report in January 2026 (statute requires a student loan ombuds report be published in October every year).

The pared down report reflects the hostility towards consumer protection from Trump’s CFPB. Trump’s Acting Director of the CFPB has let more than 40 companies off the hook for their crimes. In four cases, Vought allowed bad actors to keep the money they owed to consumers, over $120 million

Trump administration gave us the worst year for job creation since 2020 but that’s not enough for them, now they want to attack individual former employees. This admin is anti-labor to its very core.