Key information on Trump accounts as Michael and Susan Dell contribute $6 billion to new early childhood investment program

Tech entrepreneurs Michael and Susan Dell revealed on Tuesday that they are contributing $6.25 billion to extend the reach of Trump accounts, aiming to help more children benefit from the initiative introduced under President Trumps One Big Beautiful Bill earlier this year. In a letter announcing the donation, the couple stated, Investing in children is an investment that always grows. They are our future.

Their contribution marks one of the largest private donations ever made directly to American citizens. Michael Dell, founder of Dell Technologies in 1987, is currently estimated as the 11th richest person globally, with a net worth of $148 billion.

President Trump called the donation one of the most generous acts in American history during a joint press conference with the Dells. Trump accounts are still in early stages, with many details yet to be finalized.

What Are Trump Accounts?

Trump accounts are specialized investment accounts designed to grow during a childs early years and provide financial support upon reaching adulthood. Unlike traditional accounts, the initial funding may come directly from the federal government.

Registrations for Trump accounts, officially recognized in law by this name, are set to begin on July 4, 2026. Starting next summer, the government will make a one-time deposit of $1,000 for every baby born in the U.S. with a Social Security number between January 1, 2025, and December 31, 2028. Children under 18 are eligible to have an account, but the $1,000 contribution is limited to those born during this period.

Additional contributions can be made by almost anyone, up to $5,000 annually, and employers may also add funds to accounts of their employees children. Companies like Dell Technologies have pledged support, though it is unclear whether employer contributions count toward the $5,000 yearly limit.

Funds in Trump accounts are required to be invested in low-cost stock index funds such as the S&P 500 and cannot be withdrawn until the child turns 18. At that point, the account can be converted into a standard investment account.

Impact of the Dell Donation

The Congressional Budget Office estimates government spending on Trump accounts will reach $14.7 billion by 2028. The Dells $6.25 billion pledge will provide startup funds for 25 million children born too early to receive the $1,000 federal contribution, giving $250 to children under 10 in areas where the median household income is below $150,000 annually. Their donation will potentially benefit 80% of kids under 10 in these communities.

The Dells hope their donation will motivate other wealthy individuals to contribute to expanding the program. Michael Dell stated in a social media video, To philanthropists, companies, community leaders, if you want to be part of something meaningful for our children, communities, and country, join us.

Uncertainties and Future Considerations

Many aspects of Trump accounts remain unresolved, including the process for account setup, investment management, and which financial institutions will oversee the funds. Funding for the $1,000 government deposits is scheduled to end in 2028, and any extension will require Congressional approval.

Although programs like Trump accounts are intended to give children a financial head start, their impact depends on additional family contributions. Without extra deposits, an account will accumulate only a few thousand dollars by adulthood, while a child receiving the maximum $5,000 per year could see their account grow to over $191,000 by age 18.

Experts have differing opinions. The Urban Institute suggests the program may not significantly reduce income inequality, while the Cato Institute argues the accounts offer limited tax incentives compared to existing investment options. There is also debate over the popularity of accounts named after a president, leading some to refer to them as 530A accounts in formal discussions.

Author: Sophia Brooks