Michael Dell, along with his wife, Susan, announced on Tuesday that they are donating $6.25 billion to so-called “Trump accounts”—a program that gives $1,000 of “free money” from the federal government to children in the U.S. born on, or after, January 1, 2025, through the end of 2028, while Trump is in office.
The Dells’ contribution will allocate about $250 per child to 25 million children. The accounts are basically long-term savings vehicles.
Parents will be able to contribute to the accounts starting in July 2026, according to USA Today. That money will be invested in stock market mutual or index funds.
Here’s what to know.
Who is eligible for a “Trump account”?
Accounts are available to all children in the U.S. under age 18 with a Social Security number, and will be managed and activated through the U.S. Treasury, according to the factsheet for Invest America.
The contributions come as part of Trump’s One Big Beautiful Bill Act (OBBBA), which was signed into law this past summer.
The $250 Dell Foundation contribution is separate, and will go to children born from 2016 through 2024 in ZIP codes where the median household incomes are below $150,000 per year, according to The New York Times.
What are the contribution rules?
Parents “and community” (such as employers) can collectively contribute up to $5,000 per year to a Invest America account. There is no cap or limit for philanthropists, charitable organizations, or state or local government contributions.
At what age can the money be withdrawn? Can it go toward college?
Starting at age 18, a child with one of these accounts can use a portion of the savings for education or job training; starting a business; or buying a first home.
Note: The accounts automatically convert into traditional IRA, or Individual Retirement Accounts, at age 18, allowing any unused funds to continue to grow. (A traditional IRA is a tax-advantaged personal savings plan where contributions may be tax deductible.)
How can parents open an account?
Learn more about the Trump Accounts at the website for investment firm Charles Schwab, which notes, “at this time, it isn’t clear who will open the account or where it will be held.”