Michael and Susan Dell Commit $6.25 Billion to Launch “Trump Accounts” for 25 Million U.S. Children:

The Dell family’s charitable organization will deposit $250 into the investment accounts of 25 million eligible children across the United States. These initial funds are intended to grow over time through low-cost stock index funds, helping young beneficiaries build meaningful savings for adulthood. Speaking with NPR, Michael Dell, CEO of Dell Technologies, described the initiative as an opportunity to give children “a strong early advantage” in preparing for their future.Michael and Susan Dell have announced a landmark $6.25 billion philanthropic commitment aimed at giving millions of American children a financial head start. Their donation—one of the largest charitable contributions ever made toward children’s savings—will help launch the newly created “Trump Accounts,” a federal investment initiative signed into law on July 4.Although enacted into law earlier this year, the Trump Accounts program has not yet been rolled out. The U.S. Treasury Department plans to officially launch the accounts on July 4, 2026. Under the law, children born between January 1, 2025, and December 31, 2028, will automatically receive a $1,000 federal deposit into their Trump Account. These funds must be invested in a diversified index fund that mirrors the broader U.S. stock market. For children outside that birth-year window, families will be responsible for making contributions themselves. Once a child turns 18, they will be allowed to use the accumulated funds for major life investments, including higher education, purchasing a first home, or starting a business. The legislation allows a wide range of contributors to help build a child’s account. Children, parents or guardians, grandparents, relatives, friends, and even employers may contribute up to $5,000 per year. Philanthropists, nonprofits, state governments, and tribal authorities can contribute without any annual caps, giving them the flexibility to support families in a substantial way. The Dell family’s donation will be targeted specifically toward children living in ZIP codes where the median household income is below $150,000. Their goal is to broaden access to this new savings tool, ensuring that children in middle- and lower-income communities receive the same opportunities for long-term financial growth as their wealthier peers. Parents will also have the option to make an additional $5,000 contribution at the start of an account, while employers can add as much as $2,500 each year. According to estimates from the Council of Economic Advisers (CEA), if families and supporters make the maximum allowable contributions annually, a child could accumulate an average account balance of roughly $303,800 by age 18—assuming typical long-term U.S. stock market returns. Though structured similarly to a retirement account, Trump Accounts come with strict rules. Early withdrawals for non-qualified uses may result in significant tax penalties. However, the White House has confirmed that exceptions will be made for essential, wealth-building expenses such as college tuition and first-home purchases. With their historic donation, Michael and Susan Dell hope to help millions of young Americans begin adulthood with financial security and opportunity—an investment, they say, in the country’s future prosperity.

NEWS