Michael and Susan Dell announced a $6.25 billion commitment to seed investment accounts for up to 25 million U.S. children, providing $250 to each eligible child. The funds will come from their private charitable vehicles and are tied to accounts created under the new One Big Beautiful Bill Act, commonly referred to as “Trump Accounts,” passed in July.
The Dells say the $250 will be invested in low-cost stock index funds so the balances can grow over time. “The idea is to give millions of children a head start on saving for the future,” Michael Dell said. “We know that when children have accounts like this, even with modest sums, they have better outcomes in life.” Michael Dell is CEO of Dell Technologies.
Eligibility for the Dell contribution requires children to have Social Security numbers, be age 10 or younger, and have been born before Jan. 1, 2025. The Dells are prioritizing children in ZIP codes where median household income is under $150,000 to reach lower- and middle-income communities; they estimate the initiative will cover nearly 80% of children in the eligible age group across about 75% of U.S. ZIP codes.
Parents must create the new federal accounts to receive the Dells’ $250 contribution. The One Big Beautiful Bill Act created automatic accounts — called Trump Accounts — that will receive a $1,000 Treasury seed payment for babies born from this year through 2028. All children under 18 with Social Security numbers can have an account, but only newborns in the covered birth window get the $1,000 federal payment; the Dell gift aims mainly to help children who are too old for that initial federal seed.
Susan Dell urged parents to “mark their calendars for July 4, 2026,” when families may be able to claim these accounts for eligible children.
How the accounts are intended to work: contributions are meant to be invested in low-cost index funds. When beneficiaries turn 18, they may convert the balance into a retirement account or use it for education, a home purchase, or starting a business. Family and others can contribute up to $5,000 per year until the year the child turns 18.
Personal finance experts describe Trump Accounts as a hybrid of existing college and retirement savings plans; the ultimate benefit depends heavily on how much families add over time. The White House has estimated that with maximum contributions, a Trump Account could be worth nearly $1.1 million by age 28; with no additional contributions, it might grow to roughly $18,100. Significant administrative details remain unresolved, including who will open and hold the accounts.
A recent update from Charles Schwab noted that it is still unclear where accounts will be held or who will be responsible for opening them. Officials and advisers expect more guidance before families can enroll. Families interested in the program are advised to consult a tax or financial adviser to understand implications and options.