The investment account program known as “Trump Accounts” for American children has received a significant financial boost, thanks to a historic donation of **$6.25 billion** from billionaires **Michael and Susan Dell**. This funding, announced on **GivingTuesday**, aims to support a new children’s savings initiative established under the **One Big Beautiful Bill** passed earlier this summer. The program allows the **U.S. Treasury Department** to deposit **$1,000** into investment accounts for children born between **January 1, 2025,** and **December 31, 2028**.
Michael Dell, founder and CEO of **Dell Technologies**, emphasized the program’s potential impact, stating, “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.” His net worth is estimated at around **$148 billion**, according to **Forbes**.
The Dells’ contribution will provide **$250** to the investment accounts of **25 million** children aged **10 and younger**, incentivizing families to claim these accounts and invest in the stock market. Each account can receive up to **$5,000** annually from parents, guardians, and other contributors. Employers can also contribute up to **$2,500** for an employee or their dependent under the age of **18**, counted towards the annual limit, as detailed by **Morningstar**.
Claiming a Trump Account for Your Child
Under the new legislation, “Trump Accounts” are accessible to any American child under **18** with a **Social Security number**. Families can fund these accounts, which must be invested in index funds that track the overall stock market. Upon reaching **18**, children can withdraw funds to support education, purchase a home, or start a business. For children born between **January 1, 2025,** and **December 31, 2028**, the accounts will begin with an initial **$1,000** balance.
To claim the one-time **$1,000** contribution, parents need to file an election with the **IRS**. This applies to children who possess a Social Security number, and importantly, the initial deposit does not count towards the annual contribution limit as stated by **Morningstar**. Officially named “Invest America,” the program offers limited investment options, allowing funds to be invested solely in mutual funds or exchange-traded funds like the **S&P 500**.
Sign-ups for this program will commence on **July 4, 2026**, allowing parents to open their child’s investment account with minimal effort. For the first **18** years, the money will grow tax-free, providing an important financial resource for young adults.
What Happens After a Child Turns 18?
Once a child reaches **18**, the account transitions into a traditional **IRA**, adhering to established guidelines and restrictions. At this stage, they can withdraw funds for various purposes, including home purchases, educational expenses, or starting a small business. If the funds are used for other purposes, they will incur a higher tax rate, making it crucial for beneficiaries to understand the implications of their withdrawals.
While the “Trump Account” program was officially enacted as part of the president’s key legislation in July, the Dells chose to announce their contribution with a vision of marking the **250th anniversary** of U.S. independence. The program aims to provide financial support to children living in ZIP codes with a median family income of **$150,000** or less, ensuring that those who do not receive the initial **$1,000** deposit from the Treasury still benefit from the Dells’ generous contribution.
With the official launch date set for **July 4, 2026**, families are encouraged to prepare for the opportunity to secure their children’s financial futures through the “Trump Account” program. The initiative, aiming to empower the next generation, reflects a growing trend in making financial literacy and investments accessible to all American children. The **Associated Press** contributed to this report.
