illionaire Michael Dell and his wife, Susan, announced Tuesday they committed $6.25 billion to fund A new investment initiative could cover roughly 25 million U.S. children through “Trump accounts,” a Trump administration program unveiled earlier this year to provide government funded investment accounts for newborn Americans.
Key facts
Michael and Susan Dell will seed Trump accounts with $250 for children aged 10 or younger who were born before January 1, 2025, according to the nonprofit advocacy group Invest America.
President Donald Trump announced the creation of the “Trump savings accounts,” part of his so called “Big Beautiful Bill,” earlier this year alongside Michael Dell, Goldman Sachs CEO David Solomon and Uber CEO Dara Khosrowshahi. Under the plan, the Treasury Department would fund $1,000 investment accounts for children born in the U.S. between January 1, 2025, and January 1, 2029.
The $250 contribution from the Dells would be in addition to the $1,000 government seed funding, Invest America said. The funding will be available to children living in ZIP codes where the median household income is below $150,000.
What to watch for
Michael Dell is expected to join Trump at the White House later Tuesday to formally announce the donation, according to USA Today. The Treasury Department and the IRS are also expected to release formal guidance on how the investment accounts will operate. Dell told CNBC he has spoken with other philanthropists whom he expects to pledge additional funds to the program.
What are Trump accounts
The investment accounts, previously known as Money Accounts for Growth and Advancement or MAGA Accounts, were first proposed by Senator Ted Cruz of Texas. Newborn children would be automatically enrolled at birth.
Parents or other custodians could contribute up to an additional $5,000 per year in post tax funds, with the money invested in index funds tracking the broader stock market. Account holders would be allowed to withdraw up to 50% of the balance at age 18 and access the full balance at age 25 for qualified purposes such as higher education or small business financing. Full control of the account would be granted at age 30 for any use.
Unlike 529 education plans or Roth IRAs, contributions to Trump accounts would be made with post tax dollars, and withdrawals would be taxed as either long term capital gains or ordinary federal income.
