Dell details $6.25B ‘Trump Accounts’ gift; $250 for 25M kids, White House projects $1.9M by 28
Michael and Susan Dell pledged $6.25 billion to seed Treasury‑run “Trump Accounts,” including a $250 Dell deposit for about 25 million U.S. children age 10 and under in ZIP codes with median family incomes under $150,000, while the Treasury will add a one‑time $1,000 seed for U.S. citizens born Jan. 1, 2025–Dec. 31, 2028 who have Social Security numbers. The accounts — launching July 4, 2026 — are tax‑deferred, must be invested in low‑cost index funds, allow up to $5,000 in annual contributions from parents, employers and others, and the White House projects a fully funded account could grow to nearly $1.9 million by age 28.
📌 Key Facts
- Michael and Susan Dell pledged $6.25 billion to deposit $250 into roughly 25 million children’s new “Trump Accounts,” targeted to children age 10 and under in ZIP codes where median family income is below $150,000, to encourage families to claim the accounts.
- The U.S. Treasury will provide a one‑time $1,000 federal seed to each eligible U.S. citizen child born Jan. 1, 2025–Dec. 31, 2028 who has a Social Security number; all children under 18 may have a Trump Account, but only those babies born 2025–2028 qualify for the $1,000 seed.
- Trump Accounts are Treasury‑run but managed by private firms (a designated financial agent initially); funds must be invested in authorized low‑cost index‑tracking equity funds (mostly U.S. equities) with annual fees capped around 0.1%, and accounts can later be transferred to a parent’s brokerage.
- Contribution rules: up to $5,000 of contributions per child per year (indexed after 2027); employers may contribute up to $2,500 tax‑free within that cap; contributions from cities, states, tribal governments and qualified nonprofits generally do not count toward the $5,000 cap.
- Permitted uses and penalties: withdrawals at age 18 can be used for higher education, a first‑time home purchase or to start a business; withdrawals before age 18 generally incur penalties unless used for qualified purposes; account balances are not expected to count against means‑tested benefit asset limits.
- Enrollment and timing: Treasury plans to launch Trump Accounts on July 4, 2026 (activation instructions expected in May 2026); parents must create/claim accounts (IRS Form 4547 will be used to open accounts and request the federal seed), with online enrollment expected by mid‑2026—experts warn lack of automatic enrollment could leave many eligible families uninsured.
- Projected outcomes: the White House projects a fully funded Trump Account could grow to as much as nearly $1.9 million by age 28 under maximum‑contribution assumptions; by contrast, the $1,000 federal seed with no additional contributions is estimated to grow to roughly $18,100 by age 28.
- Partners and messaging: Invest America Charitable Foundation (Brad Gerstner) is assisting the Treasury with the launch; Michael and Susan Dell framed the pledge as a major private commitment to build opportunity and close the wealth gap, timing the announcement to GivingTuesday and public events.
📊 Relevant Data
In 2022, the median wealth for White non-Hispanic families was $285,000, compared to $44,900 for Black non-Hispanic families and $61,600 for Hispanic families. White non-Hispanic individuals comprise approximately 59% of the US population, Black non-Hispanic 13%, and Hispanic 19%.
Greater Wealth, Greater Uncertainty: Changes in Racial Inequality in the Survey of Consumer Finances — Federal Reserve
In 2022, child poverty rates in the US were approximately 8% for Non-Hispanic White children, 25% for Black children, 22% for Hispanic children, 10% for Asian children, and 28% for American Indian children.
Children in poverty by race and ethnicity — KIDS COUNT Data Center (Annie E. Casey Foundation)
📊 Analysis & Commentary (3)
"A pro‑Giving Tuesday commentary argues that generosity — whether small or large — redeems consumerism, fills gaps left by institutions, and should be a daily, humble practice rooted in faith and service, noting big philanthropic pledges (e.g., the Dells) but emphasizing that modest acts of giving also change lives."
"The WSJ editorial praises Michael and Susan Dell’s $6.25B pledge to seed savings accounts for children as a preferable, ownership‑preserving complement to the federal 'Trump Accounts,' while warning Democrats may politicize or expand the program into redistribution and urging that accounts remain individually owned and invested in broad index funds."
"The piece argues that a carefully designed child‑savings program (like the Treasury 'Trump Accounts' backed by the Dell pledge) and modest, credible policy changes can make a traditional family life affordable for many, while warning against relying on optimistic tariff revenue claims and urging pragmatic, progressive design choices."
📰 Sources (9)
- Michael Dell said on Fox & Friends the donation is the 'smartest investment' and aims to close the wealth gap.
- White House projection: a fully funded Trump Account could grow to nearly $1.9 million by age 28 if left untouched.
- Program detail: an additional $250 will go to 25 million children age 10 and under in ZIP codes with median incomes below $150,000.
- Restates eligibility window for federal $1,000 seed: U.S. citizens born Jan. 1, 2025–Dec. 31, 2028, and family contribution cap of up to $5,000/year.
- Dell pledge eligibility details: $250 deposits will go to children 10 and younger born before 2025 who live in ZIP codes where median family income is below $150,000.
- Enrollment mechanics: parents will open accounts via IRS Form 4547, with online enrollment expected by mid‑2026.
- Account administration: Treasury’s “designated financial agent” will manage accounts initially, with an option to transfer to a parent’s brokerage later.
- Program timing reaffirmed: contributions can be made beginning next Independence Day.
- Means‑testing clarification: account balances will not count against asset limits for means‑tested benefits, per experts/government clarifications.
- Use and penalties reiterated: withdrawals before age 18 incur penalties unless used for qualified purposes such as higher education or a first‑home purchase.
- Equity/uptake concern: experts warn lack of automatic enrollment could cause millions of eligible families to miss out.
- Trump Accounts will allow up to $5,000 in annual contributions per child.
- Eligible contributors include parents, employers, grandparents, family friends, or charities.
- CBS reiterates the accounts are tax-deferred and invested in low-cost equity index funds.
- Eligibility specifics: U.S.-citizen children born Jan. 1, 2025–Dec. 31, 2028 qualify for a one-time $1,000 federal seed; families can open accounts for children under 18 but without the $1,000 grant.
- Opening process: parents/guardians use IRS Form 4547 to open a Trump Account and request the $1,000 contribution.
- Timeline: accounts can be opened in early 2026; Treasury will send activation instructions in May 2026; private contributions can start July 4, 2026.
- Contribution limits: up to $5,000 per child per year (indexed after 2027); employers may contribute up to $2,500 tax-free within that cap.
- Third-party funding: contributions from cities, states, tribal governments, and qualified nonprofits generally do not count toward the $5,000 cap.
- Investment constraints and fees: funds must be invested in authorized index-tracking mutual funds/ETFs (mostly U.S. equities) with annual fees capped at 0.1%.
- Expert perspective: financial planners recommend taking the $1,000 federal seed but caution that personal contributions may be less advantageous than 529 or custodial accounts due to caps and tax treatment.
- Eligibility targeting: children age 10 or under, born before Jan. 1, 2025, with Social Security numbers, in ZIP codes where median income is under $150,000.
- Coverage goal: the gift aims to reach nearly 80% of children in the eligible age group across 75% of U.S. ZIP codes.
- Parents must create/claim the accounts; Susan Dell highlighted July 4, 2026 as the date to claim.
- Clarification: all kids under 18 can have a Trump Account, but only babies born 2025–2028 get the $1,000 Treasury seed.
- White House projection cited: max contributions could yield nearly $1.1 million by age 28; with no added contributions, about $18,100.
- Operational uncertainty: Charles Schwab says it's not yet clear who will open the accounts or where they will be held.
- AP/PBS says the announcement event is scheduled for 2 p.m. ET in New York and provides a live stream.
- Quotes from Michael and Susan Dell framing the gift as, in their view, the largest single private commitment made to U.S. children and intended to build 'hope and opportunity.'
- AP characterization that the pledge targets '25 million American children under 10' to incentivize claiming accounts, alongside reiteration that Treasury will deposit $1,000 for children born 2025–2028.
- Additional quote and context from Brad Gerstner (Invest America Charitable Foundation) on using the government platform to 'unlock major giving' and include families in stock-market upside.
- Treasury plans to launch 'Trump Accounts' on July 4, 2026, aligned with the U.S. semiquincentennial.
- The $6.25B pledge is by Michael and Susan Dell and will deposit $250 into each qualified child’s account (about 25 million children under age 10).
- Accounts are Treasury-run but managed by private companies; funds must be invested in an index fund.
- At age 18, withdrawals can be used for education, a home purchase, or to start a business.
- Quotes from Michael and Susan Dell framing the gift and its goals; announcement timed to GivingTuesday.
- Brad Gerstner and Invest America Charitable Foundation are assisting Treasury with program launch.
- Treasury will contribute $1,000 to each eligible child’s account.
- Eligibility window: children born between Jan. 1, 2025 and Dec. 31, 2028 who are U.S. citizens with Social Security numbers.
- Confirms the accounts are tax‑deferred and were created by a tax plan passed by Congress over the summer.