Tech billionaires Michael and Susan Dell announced Tuesday that they are pledging $6.25 billion to create some 25 million additional “Trump Accounts” for children across the country.
These accounts will be seeded with $250 each, and available for children who missed the eligibility cutoff for the $1,000 federally funded “Trump Accounts” for babies born after Jan. 1, 2025.
Michael Dell will join President Trump at the White House Tuesday to announce the initiative in person.
“These deposits will reach the accounts of most children age 10 and under who were born prior to the qualifying date for the federal newborn contribution,” the Dells said in a statement issued by their foundation.
“Children older than 10 may benefit, too, if funds remain available after initial sign-ups,” the Dell family said. “It is an incredibly practical and direct step to help families begin saving today.”
The Dells say they “believe this effort will expand opportunity, strengthen communities, and help more children take ownership of their future.”
The Dell family gift “is expected to reach nearly 80% of children age 10 and under across 75% of U.S. zip codes,” according to nonprofit Invest America.
Children born after Jan. 1 and until Dec. 31, 2028 will receive an account infused with a $1,000 investment from the U.S. Treasury, as part of the recently-passed One Big Beautiful Bill legislation.
Those accounts will also be eligible for additional contributions of up to $5,000 per year until the beneficiary child reaches age 18. Withdrawals from the accounts are not permitted until the children reach that age.
Trump accounts can be invested only in low-cost index funds or ETFs that either mirror the S&P 500 or “another American stock index,” according to the White House Council of Economic Advisers.
“These investment accounts are simple, secure, and structured to grow in value through market returns over time,” the Dell family said.
“Trump Accounts represent a potentially valuable tool for building up savings and tapping the power of compound growth for the young,” Charles Schwab tax planning director Hayden Adams recently wrote.
If a family could contribute and invest the maximum $5,000 per year in the accounts, and with a reasonable growth rate of about 6%, “by age 18, the child’s account would hold around $191,000 in assets.”
Once a child turns 18, the accounts are eligible to be converted to a traditional individual retirement account, “meaning it could continue to accumulate potential gains on a tax-free basis” for many years.
The Dells are one of the wealthiest families in America, with a fortune of nearly $150 billion, according to Bloomberg Billionaires. The family’s wealth primary source of wealth is Dell Technologies, the company founded by Michael Dell in 1984.
In recent years, the value of Dell shares have been fueled by the booming AI revolution, for which Dell is a supplier of servers and other technology.