The Trump investment account program for American children received a significant boost when billionaires Michael and Susan Dell donated $6.25 billion on GivingTuesday. This donation supports the new children’s savings program, which was established under the “One Big Beautiful Bill” passed earlier this summer. The program enables the U.S. Treasury Department to deposit $1,000 into investment accounts created for children born between January 1, 2025, and December 31, 2028.
Michael Dell, founder and CEO of Dell Technologies with an estimated net worth of $148 billion, expressed optimism about the program. “We believe that if every child can see a future worth saving for, this program will build something far greater than an account. It will build hope and opportunity and prosperity for generations to come,” he stated. The Dells’ donation will result in a $250 deposit into the accounts of 25 million children aged 10 and younger, incentivizing families to claim the accounts and invest in the stock market.
The “Trump Account” program allows contributions of up to $5,000 annually from parents, guardians, or other individuals. Employers can also contribute up to $2,500 for an employee or their dependent under 18, but this contribution counts toward the annual limit, according to Morningstar.
Eligibility and Investment Options
Under the new law, “Trump Accounts” are available to any American child under 18 with a Social Security number. Families can fund these accounts, which must be invested in an index fund that tracks the overall stock market. Upon turning 18, children can withdraw the funds for education, purchasing a home, or starting a business. For those born between January 1, 2025, and December 31, 2028, the accounts will begin with a $1,000 balance. Parents can claim this one-time contribution by filing an election with the IRS, which applies to children with Social Security numbers. Notably, this deposit does not count toward the yearly limit.
The program, formally known as “Invest America,” has limited investment options, allowing only mutual funds or exchange-traded funds like the S&P 500. Sign-ups for the program will commence on July 4, 2026, allowing parents and guardians to open their child’s investment account in a few straightforward steps. During the first 18 years, the money grows tax-free.
The Dells’ contribution specifically targets children aged 10 and younger who reside in areas with a median family income of $150,000 or less and who will not receive the $1,000 seed money from the Treasury. The plan resembles a 529 plan or an education savings account, with the child being the account owner and designated beneficiary.
Post-18 Options and Program Launch
According to Morningstar, once a child turns 18, the account transitions into a traditional IRA, subject to similar guidelines and restrictions. Withdrawals can be made for a down payment on a home, education, or to start a small business. If funds are used for non-qualified expenses, they will incur higher tax rates.
While the “Trump Account” program was officially established in July as part of the president’s signature legislation, the Dells announced the accounts will officially launch on July 4, 2026. Michael Dell noted the intention to commemorate the 250th anniversary of U.S. independence with this initiative. Until this launch date, no contributions can be made, as specified on the official program website.
The Associated Press contributed to this report, providing additional context and details regarding the implementation and impact of the Trump Account program.