Michael and Susan Dell recently announced a groundbreaking initiative to support the financial futures of millions of children across the United States. Through their charitable organization, the couple will donate an impressive $6.25 billion to establish investment accounts for 25 million eligible children. This plan aligns with the implementation of “Trump Accounts,” legislation that was enacted in July.
Under this initiative, each eligible child will receive an initial deposit of $250, intended to grow over time through investments in low-cost index stock funds. Michael Dell expressed the motivation behind this initiative, stating, “The idea is to give millions of children a head start on saving for the future.” He emphasized that having access to such accounts—even with modest initial sums—could lead to significantly better life outcomes for these children.
To qualify for the Dells’ gift, children must be aged 10 or younger and have Social Security numbers, with birthdates prior to January 1, 2025. The Dells have specified a target demographic, aiming to reach children in ZIP codes where the median income is under $150,000. By their estimation, this initiative could benefit nearly 80% of children within the targeted age group throughout 75% of ZIP codes nationwide.
The investment accounts, known as Trump Accounts, are part of the newly introduced One Big Beautiful Bill Act. Every American baby born from this year through 2028 will automatically receive a Trump Account funded with an initial $1,000 from the U.S. Treasury. However, the Dells’ donations specifically focus on older children who are ineligible for this federal payment. Michael Dell clarified that their initiative seeks to assist those aged 10 and under who do not qualify for the Treasury program.
Susan Dell encouraged parents to take note of July 4, 2026, as a significant date when they can claim these accounts for their children.
The mechanics of Trump Accounts allow the money to grow through investments, and when the children reach the age of 18, they have the option to use the funds for education, buying a home, or starting a business, or they can convert the money into a retirement account. Parents and other contributors can add up to $5,000 annually until the child turns 18.
Personal finance experts have described the Trump Accounts as bridging the gap between existing financial plans. The potential benefits of these accounts vary substantially depending on family contributions. According to the White House, if maximum contributions are made, accounts could be valued at nearly $1.1 million by the time beneficiaries reach 28 years old. Conversely, if no additional contributions are made, the value could be significantly lower, at approximately $18,100.
Despite the promise of the initiative, several key details regarding the administration of Trump Accounts remain unclear. A recent communication from Charles Schwab pointed out that it has yet to be determined who will be responsible for opening these accounts or where they will be held. The investment bank has recommended that families interested in this plan consult with a tax or financial adviser for further guidance.
