Dell's $6.25B Gift Boosts 'Trump Accounts' for 25M US Kids: $1,000 Newborn Bonus and $250 Initial Deposit
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In a landmark announcement, Michael and Susan Dell are pledging $6.25 billion to establish investment accounts for 25 million children in the United States. The funds from their charitable organization will support the 'Trump Accounts,' which were enacted into law in July. The initiative aims to provide millions of children with an early advantage in saving for their future. The accounts will be seeded with $250 for each qualifying child and will appreciate over time through investments in low-cost stock funds that mirror market indexes. The Dell's donation will focus on assisting children from low-income families in ZIP codes where the median household income is less than $150,000. The funds will be allocated to support children born between January 1, 2025, and December 31, 2028, with an additional $1,000 newborn bonus. Under the plan, families, parents, or guardians can contribute up to $5,000 annually to each Trump Account, while employers can contribute up to $2,500. Philanthropists, charitable organizations, and public entities can contribute without restrictions. The scheme is designed to help American children achieve an average account balance of $303,800 by the time they reach 18 years of age, based on average returns from the US stock market. However, premature withdrawals for unauthorized purposes may incur significant tax penalties, with exceptions for expenses related to higher education or the purchase of a first home. The US Department of the Treasury plans to launch the 'Trump Accounts' on July 4, 2026. The initiative is expected to provide millions of children with a head start in saving for their future and achieving their long-term goals.
