Tech billionaires Michael and Susan Dell announced Tuesday that they will pledge $6.25 billion to create an additional 25 million “Trump Accounts” for children nationwide.
These accounts will receive $250 each and will be available to children who did not meet the eligibility limit for federally funded “Trump Accounts” of $1,000 for babies born after January 1, 2025.
Michael Dell will join President Trump at the White House on Tuesday to announce the initiative in person.
“These deposits will reach the accounts of most children ages 10 and younger who were born before the qualifying date for the federal newborn tax,” the Dells said in a statement issued by their foundation.
“Children ages 10 and older can also benefit if funds remain available after initial enrollments,” the Dell family said. “It’s an incredibly practical and straightforward step to help families start saving today.”
The Dells say they “believe this effort will expand opportunities, strengthen communities and help more children take ownership of their future.”
According to the nonprofit Invest America, “the Dell family’s donation is expected to reach nearly 80% of children under age 10 in 75% of U.S. ZIP codes.”
Children born after January 1 and through December 31, 2028 will receive a $1,000 investment account from the U.S. Treasury, as part of the recently passed One Big Beautiful Bill legislation.
Those accounts will also be eligible for additional contributions of up to $5,000 per year until the beneficiary child turns 18. No withdrawals are allowed from the accounts until the children reach that age.
Trump’s accounts can only be invested in low-cost index funds or ETFs that mirror the S&P 500 or “another U.S. stock index,” according to the White House Council of Economic Advisers.
“These investment accounts are simple, secure and structured to increase in value through market returns over time,” the Dell family said.
“Trump Accounts represent a potentially valuable tool for building savings and harnessing the power of compound growth for young people,” Hayden Adams, director of tax planning at Charles Schwab, recently wrote.
If a family could contribute and invest the maximum $5,000 a year into the accounts, and with a reasonable growth rate of about 6%, “by age 18, the child’s account would have about $191,000 in assets.”
Once a child turns 18, the accounts are eligible to convert to a traditional individual retirement account, “meaning they could continue to accumulate potential earnings tax-free” for many years.
The Dells are one of the richest families in the United States, with a fortune of almost $150 billion, according to Bloomberg Billionaires. The family’s main source of wealth is Dell Technologies, the company founded by Michael Dell in 1984.
In recent years, Dell’s stock value has been boosted by the burgeoning AI revolution, for which Dell is a provider of servers and other technologies.
