A significant financial initiative aimed at American children received a substantial boost on GivingTuesday, as billionaires Michael and Susan Dell donated $6.25 billion to support the “Trump Account” program. This investment account initiative, part of the broader “One Big Beautiful Bill” passed earlier this summer, is designed to help children born between January 1, 2025, and December 31, 2028 establish a financial foundation for their future.
According to the U.S. Treasury Department, the “Trump Account” program allows for a one-time deposit of $1,000 into investment accounts set up for eligible children. This initiative aims to foster a sense of financial security and opportunity. Michael Dell, founder and CEO of Dell Technologies, stated, “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.”
The Dells’ donation will provide an initial $250 to the investment accounts of 25 million children aged ten and younger, encouraging families to claim these accounts and engage in stock market investments. Under this program, parents, guardians, and other contributors can deposit up to $5,000 annually into these accounts, while employers may add up to $2,500 for their employees’ dependents under the age of 18.
How to Claim a Trump Account for Your Child
The “Trump Accounts” are available to any American child under 18 who possesses a Social Security number. Families can fund these accounts, which must be invested in an index fund that tracks the overall stock market. Upon reaching the age of 18, children can access the funds for education, home purchases, or starting a business.
Parents can claim the initial $1,000 contribution by filing an election with the Internal Revenue Service (IRS). This deposit does not count towards the annual contribution limit, allowing families to maximize their savings. The formal name for the program is “Invest America,” and it restricts investment options to mutual funds or exchange-traded funds, such as the S&P 500.
Sign-up for the “Trump Accounts” will commence on July 4, 2026, coinciding with the 250th anniversary of U.S. independence. The process will be straightforward, enabling parents and guardians to establish their child’s investment account with minimal effort. For the first 18 years, the funds will grow tax-free, maximizing the potential for financial growth.
Future of the Program and Account Management
The Dells’ initiative will specifically target children aged ten and younger living in areas with a median family income of $150,000 or less, who are not eligible for the $1,000 seed money from the Treasury. This approach mirrors existing 529 plans or education savings accounts, where the child is designated as the account owner and beneficiary.
Once a child turns 18, the “Trump Account” will convert into a traditional Individual Retirement Account (IRA), adhering to similar guidelines and restrictions. The funds can be utilized for significant life expenses, including education or homeownership. If the money is withdrawn for purposes outside these categories, it will be subject to higher taxation.
While the “Trump Account” program officially became law as part of the president’s signature legislation in July, the Dells have emphasized the importance of the program’s launch date. Contributions cannot be made until July 4, 2026, marking a significant milestone in the program’s implementation.
This initiative represents a concerted effort to equip future generations with the financial tools needed to thrive in an increasingly complex economy. With a strong financial base, children can aspire to achieve their dreams, paving the way for a more prosperous future.
