What Parents Should Know About Michael and Susan Dell Donating Billions to Fund ‘Trump Accounts’ For Children

Millions of American children who missed the eligibility cutoff for new federally funded “Trump Accounts” will each receive $250 deposits to seed their accounts as a result of a $6.25 billion donation from tech billionaires Michael and Susan Dell. The Dells said they were inspired to make the charitable contribution in light of the federal program championed by President Donald Trump, dubbed “Trump Accounts” by his Administration, which will create $1,000 investment accounts for American babies beginning next year. “What inspired us most was the chance to expand this opportunity to even more children,” the Dells said in a press release. “We believe this effort will expand opportunity, strengthen communities, and help more children take ownership of their future. And we believe everyone has a role to play.” Here’s what parents should know about the news. What are “Trump Accounts”? The “Trump Accounts” will be tax-deferred investment accounts that guardians can open for eligible children under the age of 18. For babies born in America after Dec. 31, 2024 and before Jan. 1, 2029, the government will make a one-time contribution of $1,000 to each account, which will be privately held by the beneficiary’s guardians. The accounts will “track a stock index and allow for additional private contributions of up to $5,000 per year,” according to the White House. When the children turn 18, they will have the option of withdrawing money from the account to fund their education or a new business, among other uses. The White House has said that the accounts, which are being established under Trump’s “One Big Beautiful Bill” that the President signed into law over the summer, will set children “on a course for prosperity from the very beginning.” The Dells heralded the program in their press release. “This automatic $1,000 deposit by the federal government gives every American newborn a transformative head start,” they said. “These investment accounts are simple, secure, and structured to grow in value through market returns over time. At age 18, these young Americans can have a financial foundation for continued education, job training, home ownership, or future savings. It’s a simple yet very powerful idea.” But some financial experts have cast doubt on the effectiveness of the program, arguing that the benefits aren’t as significant as other tax-shielded savings options, such as 529 college savings accounts. What does the Dells’ contribution do? The Dells’ donation will expand on the Trump Accounts, seeding 25 million additional accounts with $250 each for children who were born before the qualifying date for the $1,000 federal contribution. Who is eligible for the benefit funded by the Dells? Children aged 10 and under who were born before 2025 are eligible for the $250 funded by the Dells’ donation. Children above the age of 10 may also be eligible, “if funds remain available after initial sign-ups,” the Dells said. Children also have to live in a ZIP code where the median annual household income is $150,000 or less to qualify for the benefit.  The children who receive the automatic $1,000 deposit from the federal government are not eligible for the $250 deposit from the Dells. Invest America, a nonprofit that is supporting the Treasury Department in creating the accounts, projected that the Dells’ contribution will reach nearly 80% of children aged 10 and under across 75% of zip codes in the U.S. When can eligible children with accounts receive the $250 deposit from the Dells? The roughly 25 million children will receive the $250 deposit once their guardians activate their “Trump Accounts,” according to Invest America. How do you sign up for an account? Every child under 18 will be eligible for a Trump Account beginning on July 4, 2026, according to Invest America. But the specifics of how the accounts will function and how to sign up for one have not yet been shared.