Dells donate $6 billion to seed 'Trump Accounts' for every US newborn

When the children of wealthy households leave the nest, they often benefit from their parents’ largesse in the form of a trust fund. Less affluent peers may receive nothing at all — or even be expected to support their families when they become adults.

But what if all children, regardless of their family’s circumstances, could get a financial boost when they turn 18?

That’s the idea behind “Trump Accounts,” a lesser-known provision of President Donald Trump’s tax legislation. The bill, signed into law earlier this year, gives $1,000 for 25 million U.S. children. including every newborn, so long as their parents open an account. That tax-deferred money is invested in the stock market by private firms, and the child can access the funds when they turn 18. The parents of older children can also open accounts, but they won’t get the $1,000 bonus.

Backers say it’s a way to bolster capitalism and help children from low-income households build wealth.

Thanks to a historic $6.25 billion donation announced Tuesday by Michael and Susan Dell, some children 10 and under could also receive $250 in seed money if their parents open an account. That money is reserved for kids who live in ZIP codes with a median family income of $150,000 or less and who won’t get the $1,000 seed money from the Treasury.

It’s new savings tool where money is invested in the stock market on behalf of a child. The child can’t access the money until they turn 18 and can only use it for specific purposes, such as paying tuition, starting a business or making a down payment on a home.

After a parent opens an account, the U.S. Treasury will contribute $1,000 for newborns. Private banks and brokerages will manage the money, which must be invested in U.S. equity index funds that track the stock market and charge the accounts no more than 0.10% in annual fees.

Parents can contribute up to $2,500 annually in pretax income, much like they do for retirement accounts. Parents’ employers, relatives, friends, local governments and philanthropic groups can also pitch in. Yearly contributions are capped at $5,000, but contributions from governments and charities don’t count toward that total.

To qualify for the $1,000 seed money, a baby must be a U.S. citizen, have a Social Security number and be born between Jan. 1, 2025, and Dec. 31, 2028. Any parent can open an account for a qualifying child, regardless of the parent’s immigration status.

It’s important to note that the child won’t be able to access the money until they turn 18, except in rare circumstances, so it can’t help with immediate expenses. And disbursements from the accounts will be subject to taxes.

Children born before 2025 won’t qualify for the $1,000 incentive, but parents can still open accounts for them as long as they’re under 18. Parents can still invest up to $2,500 pretax for those kids, and they may benefit from the Dells’ donation, giving $250 to children 10 and under in certain ZIP codes.

The accounts won’t be open for contributions until July 2026. But parents of eligible kids can sign up now by filling out Form 4547 from the Internal Revenue Service. As of Tuesday afternoon, that form was not yet available on the Trump Accounts website.



Michael and Susan Dell at White House press conference. (AP Photo Evan Vucci)