Michael and Susan Dell to fund Trump accounts by giving $250 apiece to 25 million U.S. kids
Michael and Susan Dell on Tuesday said they will donate $250 in so-called Trump accounts to 25 million American children, a $6.25 billion investment that the Dells said is designed to jumpstart the kids' futures.
The money will be given to most children ages 10 and younger who were born before the qualifying date of the Trump accounts, which were created earlier this year through the Republicans' tax and spending bill. Those accounts are designed to provide $1,000 to babies born during President Trump's second term in office.
"Children older than 10 may benefit, too, if funds remain available after initial sign-ups. It is an incredibly practical and direct step to help families begin saving today," the Dells said in their statement.
Go deeper with The Free Press
Dell, who is ranked by the Bloomberg Billionaires Index as the world's 11th richest person with net worth of $148 billion, said he and his wife were inspired by the Invest America program, which is the formal name of the Trump accounts. The Dells said they are encouraging others to join in by contributing funds to the accounts, ranging from other philanthropists and businesses to childrens' families and friends.
"We believe the smartest investment we can make is the one in children," Michael Dell told "CBS News 24/7 Mornings" in a Tuesday interview. "We know that when a child has an account like this, even a modest sum, it really improves their outlook on life, and they are more likely to graduate from high school and college, and buy a home, start a business, start a family, become productive members of society."
Susan Dell added that the gift builds on the couple's previous philanthropic efforts to help children through their foundation. The pair announced the program on Giving Tuesday, an annual event where people are encouraged to make charitable contributions.
"When we heard about this, for us, this was a natural fit," Susan Dell told "CBS News 24/7 Mornings." "This was going to reach a lot of children and help them have a start at a really bright future."
Dell Technologies — the company founded by Michael Dell, where he serves as CEO — said in June that it had pledged to match the Treasury Department's $1,000 contributions to the Trump Accounts. The Dell corporate match will be provided to every child born to its U.S.-based employees between Jan. 1, 2025, and Dec. 31, 2028, the company said in an email to CBS News.
"Today's philanthropic gift from Michael and Susan Dell is separate from, and in addition to, our corporate commitment," Dell Technologies said. "Together, these contributions provide children with meaningful financial opportunities and a transformative head start toward their futures."
What are Trump accounts?
Every child born in the U.S. between Jan. 1, 2025, and Jan. 1, 2029, with a Social Security number, and whose parents have Social Security numbers, would be automatically enrolled in the program, according to Invest America.
Sign-ups are slated to begin on July 4, 2026, with parents and caregivers needed to activate the accounts. The Department of Treasury will seed the accounts with $1,000 per child, while parents, friends and others can also contribute up to $5,000 per year.
Signing up will be easy, according to details released by the Trump adminstration on Tuesday. Parents or guardians will need to file an IRS Form 4547, a one-page document that asks for basic information such as a child's home address and Social Security number, to activate the account.
The accounts are limited to investing in broad U.S. stock funds that track the overall market, such as a S&P 500 fund, don't use leverage and charge no more than 0.1% in annual fees. Parents can make elections for their children's accounts at trumpaccounts.gov.
The accounts are locked until the child turns 18, at which point the funds may be used for qualified expenses, which include:
- Education, such as college tuition or professional training
- Homeownership via a down payment on a first home
- Entrepreneurship, or the funds to start a business
When children turn 18, they may also opt to keep the money in the account and continue to invest.
How will the Dells' contributions work?
The $250 contributions will also be made through Invest America accounts, according to a fact sheet about the Dells' plan.
The $250 will be contributed to accounts for kids under 10 years old but who were born before 2025, and therefore don't qualify for the original Trump accounts, the Dells said. Children who are eligible for the $1,000 under the original Invest America plan don't qualify for the Dells' $250 investment.
"Priority goes to younger children if demand exceeds available funds," they noted. "Any remaining funds may open eligibility for older children."
The accounts will have the same guidelines as the $1,000 accounts, with the investments locked until the children turn 18 years old, at which point they can use the money for qualified expenses like education or buying a home.
When the children turn 18, the accounts automatically convert to a traditional IRA, which means unused funds can continue to grow.
