What Is H.R. 11026 and What Are Trump Accounts?

H.R. 11026 is a bill introduced in Congress on November 14, 2026, aiming to amend Title 37 of the U.S. Code. If passed, it would let the Secretary of Defense authorize bonus contributions to so-called "Trump Accounts" for service members who agree to continue serving. These accounts appear to function similarly to employer-sponsored retirement accounts, though the specific structure and rules for "Trump Accounts" would be defined by the Department of Defense if the bill becomes law.

The bill also amends the Internal Revenue Code to ensure that these DoD contributions are treated like civilian employer contributions for tax purposes. This could mean more favorable tax deferral or exclusion on contributions, similar to 401(k) or Thrift Savings Plan (TSP) matching.

How Would the Bonus Contributions Work?

Under H.R. 11026, eligible service members who commit to continued service—such as re-enlisting or extending their contract—could receive bonus contributions directly into their Trump Accounts. The bill does not specify the exact dollar amount or percentage, but it authorizes the Secretary of Defense to set these terms, likely through future DoD regulations.

These contributions would be in addition to regular pay and existing retirement benefits. The intent is to provide a financial incentive for retention, similar to reenlistment bonuses but with the added benefit of long-term retirement savings growth. For details on other military pay and bonus structures, see our military retirement hub.

Tax Treatment and Financial Planning Implications

The bill aligns the tax treatment of these DoD bonus contributions with employer contributions to retirement accounts under the Internal Revenue Code. This means contributions may not be taxed as income in the year they are made, but rather grow tax-deferred until withdrawal, similar to TSP or 401(k) plans.

Service members should consider how these contributions fit into their overall retirement strategy. If the bill passes, you may want to adjust your own savings rate or consult a financial advisor to maximize the combined benefits. For more on calculating your retirement income, visit our BAH calculator and retirement hub.

Who Would Be Eligible and What Should You Do?

Eligibility would likely be limited to active-duty service members who commit to an additional term of service, but final rules would be set by the DoD. Veterans and current service members should monitor updates from the Department of Defense and Congress. If you are considering re-enlistment or contract extension, ask your personnel office about the status of H.R. 11026 and whether Trump Account bonuses could apply to you.

Stay informed by checking our explainers index for updates on this and other legislative changes. If you are planning for retirement or managing military pay, understanding these potential changes can help you make better financial decisions.

Next Steps for Veterans and Military Families

H.R. 11026 is not yet law. Veterans and military families should:

  • Monitor the bill's progress in Congress and watch for DoD implementation guidance.
  • Review your current retirement savings strategy and consider how bonus contributions could increase your long-term savings.
  • Consult with a financial advisor or your base's personal financial counselor for tailored advice.
  • Visit our military retirement hub for ongoing updates and planning tools.

For more information on military benefits and legislative changes, see our VA claims hub and topic explainers.