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Tech billionaires Michael and Susan Dell announced on Tuesday (December 2) that they are pledging $6.25 billion to create 25 million additional "Trump Accounts" for children across the United States. These accounts will be seeded with $250 each and are intended for children who missed the eligibility cutoff for the $1,000 federally funded "Trump Accounts" available to babies born after January 1, 2025. Michael Dell will join President Donald Trump at the White House to announce the initiative in person.
According to the Dell family, the deposits will reach most children aged 10 and under who were born before the qualifying date for the federal newborn contribution. Children older than 10 may also benefit if funds remain after initial sign-ups. The Dell family stated, "It is an incredibly practical and direct step to help families begin saving today." The initiative is expected to reach nearly 80% of children aged 10 and under across 75% of U.S. zip codes, as reported by nonprofit Invest America.
The "Trump Accounts" are part of the One Big Beautiful Bill legislation, where children born between January 1, 2025, and December 31, 2028, will receive a $1,000 investment from the U.S. Treasury. These accounts can receive additional contributions of up to $5,000 per year until the child turns 18. The accounts can only be invested in low-cost index funds or ETFs that mirror the S&P 500 or another American stock index.
The Dell family believes this effort will expand opportunity, strengthen communities, and help more children take ownership of their future. Once a child turns 18, the accounts can be converted to a traditional individual retirement account, allowing potential gains to accumulate on a tax-free basis for many years. The Dell family, with a fortune of nearly $150 billion, primarily from Dell Technologies, aims to use their wealth to make a significant impact on future generations.