Michael and Susan Dell announced a major philanthropic gift of $6.25 billion to support investment accounts for millions of American children, one of the largest charitable gifts in US history. The money will help fund deposits into the new “Trump Accounts” program, the flagship of President Donald Trump’s One Big Beautiful Act that will roll out nationwide in 2026.
Who is eligible for a Trump account?
Under the scheme, any child in the United States with a Social Security number and under the age of 18 can open a Trump account once the program launches on July 4, 2026. Parents or guardians will be responsible for setting up and managing these accounts.
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The federal government will automatically deposit $1,000 into the accounts of all eligible children born between January 2025 and December 31, 2028.
Michael and Susan Dell’s gift expands the initiative to younger children who fall outside this federal window. Their $6.25 billion pledge provides $250 per child to at least 25 million children age 10 and under.
Who can donate to Trump’s account? And how much can they give?
Children, parents or guardians, extended family, friends and employers can contribute up to $5,000 a year to a single Trump account, separate from the $1,000 government deposit.
Philanthropists, charities, and some public entities—including state governments and tribal authorities—can contribute without limitation.
What about the $6.25 billion contribution?
The Dells donation will target children living in zip codes where the median household income is less than $150,000. Each child who qualifies for the Trump account will receive approximately $250 to be deposited into their investment account once the program begins.
What will happen to the money in Trump’s accounts?
Funds held in the Trump accounts will be invested in a diversified, low-cost stock index fund reflecting the broader market. Private equity firms will manage these accounts on behalf of the government.
When can you withdraw money from the Trump account?
Withdrawals are only allowed after the account holder reaches 18 years of age. At this point, however, the system effectively mirrors a traditional retirement account: early withdrawals for unauthorized use can be subject to significant tax penalties.
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The White House said there would be exemptions “like college education expenses or first home purchases.” Brokerage firm Charles Schwab has released an explanation outlining the tax implications and permitted withdrawal scenarios.
Will Trump’s bills help lift more American children out of poverty?
Experts remain skeptical. The Trump administration’s tax and spending legislation includes significant cuts to welfare programs such as Medicaid and the Supplemental Nutrition Assistance Program (SNAP), raising concerns that immediate support for low-income families is being traded for long-term investment vehicles that many households may struggle to contribute to.
Critics say the structure of Trump’s accounts risks favoring wealthy families. “As currently structured, these accounts will become yet another tax haven for the wealthiest, while the vast majority of American families struggling to cover basic expenses such as food, childcare and housing will struggle to find the extra money to turn seed money into a meaningful investment,” the Guardian quoted Amy Matsui of the National Women’s Law Center as saying.
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Amy Matsui added: “Furthermore, the law prevents many children in immigrant families from benefiting.
There have also been questions about potential pro-natalist motives. The administration has previously discussed incentives such as $5,000 “baby bonuses” to encourage higher birth rates.
