Major Pledge for Children’s Financial Future
Tech billionaires Michael and Susan Dell made headlines on Tuesday with their astonishing commitment of $6.25 billion to establish approximately 25 million additional “Trump Accounts” for children nationwide. These accounts, highlighted by the Dells, will each receive an initial funding of $250, specifically aimed at children who missed the cutoff for the federally backed $1,000 “Trump Accounts” for newborns born after January 1, 2025.
Focusing on the Underserved
The initiative seeks to prioritize children residing in ZIP codes with median incomes below $150,000. “The greatest investment that we could possibly make is in children,” Susan Dell remarked during a joint announcement with President Donald Trump at the White House. Trump added, “It’s really an amazing moment that two people would do that kind of a contribution,” emphasizing the weight of their philanthropic endeavor.
A Thoughtful Journey to Pledge
When questioned about the origins of this substantial donation, Michael Dell explained, “We started talking about Texas only at the beginning. And then we thought about it some more.” The couple deliberated for quite some time before finalizing their decision, wanting to ensure it wasn’t their last act of commitment. He urged states to prioritize “growing financial literacy” to educate families about the operation of these accounts and the market.
Reaching Millions of Children
The Dells confirmed that “these deposits will reach the accounts of most children aged 10 and under who were born prior to the qualifying date for the federal newborn contribution.” They indicated that even children older than 10 could benefit if funds are still available after initial sign-ups.
“It is an incredibly practical and direct step to help families begin saving today,” the Dells asserted, expressing confidence that this initiative will “expand opportunity, strengthen communities, and help more children take ownership of their future.”
Account Specifics
The Dell family’s generous gift is projected to reach nearly 80% of children aged 10 and under across approximately 75% of U.S. ZIP codes. Children born from January 1 until December 31, 2028, will automatically receive accounts infused with a $1,000 investment courtesy of the U.S. Treasury, part of the newly enacted One Big Beautiful Bill.
These accounts are set to open and begin accepting contributions starting July 4, 2026. Initially administered by a financial firm designated by the Treasury Department, account holders will later have the option to transfer to any brokerage firm. Contributions can be made annually, with a cap of $5,000 until the child reaches 18, but withdrawals are off-limits until they hit that age. Notably, investments in these accounts are restricted to low-cost index funds or ETFs reflecting the S&P 500 or other American stock indexes.
Investment Potential
The Dell family described the accounts as “simple, secure, and structured to grow in value through market returns over time.” According to Hayden Adams, tax planning director at Charles Schwab, Trump Accounts serve as a “potentially valuable tool for building up savings and tapping the power of compound growth for the young.”
With maximum contributions of $5,000 per year and assuming a moderate growth rate of 6%, a child’s account could amass around $191,000 in assets by the time they turn 18. After reaching adulthood, these accounts could even be converted into traditional individual retirement accounts, promoting further growth on a tax-free basis for years to come.
The Dells’ Influence in Tech
As one of America’s wealthiest families, boasting a fortune close to $150 billion according to Bloomberg Billionaires, the Dells are major players in the tech world. Their wealth largely stems from Dell Technologies, the company founded by Michael Dell in 1984. Recent years have seen the value of Dell shares soar, driven by the flourishing AI revolution, where Dell stands as a key supplier of servers and technology.
