Citi Foundation grants Prosperity Now $5M to boost child savings
What's the deal? The CitiDealroom has a profile for this one. Try Dealroom → Foundation, the philanthropic arm of banking giant Citi, has pledged a $5m grant to Prosperity NowDealroom has a profile for this one. Try Dealroom → to power its newly launched Asset-Building for Children (ABC) Initiative. The programme aims to expand take-up of child savings schemes among lower-income families in the US.
Why now? The initiative centres on the Trump Accounts, also known as 530A accounts, tax-deferred investment vehicles introduced under the One Big Beautiful Bill Act of 2025. Each qualifying US child under 18 receives a $1,000 federal seed payment. The accounts are expected to go live in July 2026.
The momentum: According to the Treasury Department, almost six million children had enrolled by late May 2026 — close to 40% of those eligible, based on Urban Institute figures.
What's the endgame? Over two years, the ABC Initiative will bring account information and early wealth-building guidance directly into US homes. It will also train IRS-sponsored Volunteer Income Tax Assistance (VITA) providers, which offer free tax preparation to low-income households, with support through the 2027 and 2028 tax seasons.
Why VITA? One route to opening an account is via tax filing, so VITA providers are seen as well placed to drive enrolment. The grant equips them with tailored training and materials to reach eligible families.
The backer: 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. In February 2026, Citi pledged to match the government's seed contribution for children of eligible US employees born between January 1, 2025, and December 31, 2028.
"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," said Brandee McHale, Citi head of community investing and development and Citi Foundation president.
Prosperity Now president and CEO Marisa Calderon said the initiative would help "turn moments like tax time into meaningful steps toward economic opportunity and long-term financial security."
The signal: The grant is an early, high-profile philanthropic bet on child savings infrastructure tied to a new federal account type. It reflects a broader shift among US financial institutions from one-off financial education toward integrated "access plus guidance" models that pair tax-time channels with targeted savings products at scale.
Read more: Fintech Global
Image credit: Images_of_Money
