Michael and Susan Dell will donate $6.25 billion to seed investment accounts for 25 million U.S. children under a plan announced Tuesday. The gift would put $250 into each eligible child’s account, intended to grow over time through investments in low-cost index-tracking stock funds.
“The idea is to give millions of children a head start on saving for the future,” Michael Dell told NPR. Michael Dell is the CEO of Dell Technologies.
Who qualifies
To receive the Dell gift, children must have Social Security numbers and be age 10 or younger and born before Jan. 1, 2025. The Dells said they are prioritizing kids who need the money most by targeting ZIP codes with median incomes under $150,000. They estimate the gift will reach nearly 80% of children in the eligible age group across 75% of U.S. ZIP codes.
How to claim the gift
Parents must create the new “Trump Accounts” for their children to receive the Dells’ funds. The One Big Beautiful Bill Act, signed into law this summer, automatically provides $1,000 from the U.S. Treasury for babies born from 2025 through 2028 into these accounts. Children under 18 with Social Security numbers can have Trump Accounts but older kids do not receive the Treasury payment; the Dell donations target many of those children.
Susan Dell urged parents to “mark their calendars for July 4, 2026,” the date she said parents could start claiming the accounts.
How Trump Accounts work
Funds in Trump Accounts are invested in low-cost equity index funds and are designed to grow over time. At age 18, beneficiaries can convert the money into a retirement account or use it for education, a home purchase, or to start a business. Family members and others can contribute up to $5,000 per year until the year the child turns 18.
Potential outcomes and unknowns
Financial experts describe Trump Accounts as a hybrid of existing savings plans, with outcomes varying widely depending on additional contributions. The White House projects that with maximum contributions, a Trump Account could be worth nearly $1.1 million by age 28; without further contributions, the account could be worth about $18,100.
Key administrative details remain unclear, including who will open and hold the accounts. Charles Schwab noted it is not yet clear where accounts will be held or who will handle account openings. Families interested in the program are advised to consult tax or financial advisers.