Citi Foundation announces $5 million grant to Prosperity Now to help American households build early savings for their children

NEW YORK--(BUSINESS WIRE)--The Citi Foundation today announced a $5 million grant to support Prosperity Now’s new ABC Initiative (Asset-Building for Children), a program to advance awareness and adoption of existing and emerging child savings opportunities, with a focus on the new Trump Accounts, also known as 530A accounts, among low-income households across the U.S.

Child-focused savings and investment accounts help families begin building wealth early, supporting pathways for education, economic mobility and long-term financial security. The new Accounts, established under the One Big Beautiful Bill Act of 2025 and signed into law by President Trump, are tax-deferred investment accounts featuring a $1,000 seed contribution from the federal government for eligible U.S. children under 18. The Treasury Department announced in late May 2026 that nearly 6 million children had signed up for these Accounts, or nearly 40% of eligible children, according to the Urban Institute.

With the $5 million grant, the ABC Initiative will deliver information about the Accounts and early wealth building strategies directly to American households. It will also provide specialized training and resources on the Accounts to IRS-sponsored Volunteer Income Tax Assistance (VITA) providers, who deliver free federal and state tax preparation services for eligible low-income households. One way to open an Account is through the tax filing process, and VITA providers are well-positioned to increase awareness and ensure that eligible families enroll in this new child savings opportunity.

"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, Head of Community Investing and Development at Citi and President of the Citi Foundation. "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."

With the anticipated launch of the Accounts in July 2026, the ABC Initiative will be implemented over the next two years, providing targeted support for the 2027 and 2028 tax seasons as well as year-round resources and learning opportunities on early wealth building accounts.

"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," said Marisa Calderon, President and CEO of Prosperity Now. "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."

The funding for the ABC Initiative builds on Citi and the Citi Foundation’s more than 20 years of support for advancing innovative approaches to early wealth-building across the U.S. This longstanding commitment has included collaborations with nonprofits, municipalities and educational institutions to develop foundational research on early wealth-building; help pilot the first publicly-funded, universal children’s savings account program; and advance best practices in children’s asset-building strategies. It underscores Citi’s long history of supporting financial education through collaboration with trusted community providers and employee volunteers delivering financial education workshops to America’s youth. In February 2026, Citi also committed to matching the U.S. government’s seed contribution to the accounts for children of eligible U.S. colleagues born between January 1, 2025 and December 31, 2028.

About the Citi Foundation

The Citi Foundation works to promote economic progress and improve the lives of people in low-income communities around the world. We invest in efforts that increase financial inclusion, catalyze job opportunities for youth, and reimagine approaches to building economically vibrant communities. The Citi Foundation's "More than Philanthropy" approach leverages the enormous expertise of Citi and its people to fulfill our mission and drive thought leadership and innovation. For more information, visit www.citifoundation.com.