Michael Dell, Spurs Stakeholder, Backs Trump Accounts With Major Donation
“Trump Accounts” are a new child investment program created under President Donald Trump’s tax and spending legislation, built around the idea that every child should have some access to wealth-building tools, regardless of family income. The program provides a $1,000 federal seed deposit for qualifying newborns, which is invested in the stock market and locked until the child turns 18.
To qualify for the $1,000 contribution, a child must be a U.S. citizen with a Social Security number and be born between January 1, 2025, and December 31, 2028.
A parent or guardian must open the account, but the parent’s immigration status does not affect eligibility. The money cannot be accessed until adulthood, except in rare circumstances, and withdrawals are subject to taxes. When the child turns 18, funds can only be used for specific purposes such as paying for education, starting a business, or making a down payment on a home.
The accounts are privately managed by banks and brokerages, not the federal government. Investments are limited to U.S. equity index funds that track the stock market and charge no more than 0.10 percent in annual fees. Parents can contribute up to $2,500 a year in pretax income, similar to retirement accounts, with total annual contributions capped at $5,000. Employers, relatives, friends, local governments, and charitable organizations can also contribute, and contributions from governments and nonprofits do not count toward the yearly cap.
Children born before 2025 do not qualify for the $1,000 federal incentive, but parents can still open accounts for minors under 18 and contribute pretax income on their behalf. Some older children may receive additional help through private philanthropy.
Billionaires Michael and Susan Dell announced a $6.25 billion donation to “Trump Accounts.” A major donation that will provide $250 in seed money to children 10 and under who live in ZIP codes with median family incomes of $150,000 or less and who do not qualify for the federal $1,000 deposit.
The accounts will not be open for contributions until July 2026. Parents of eligible children are expected to begin the process by completing IRS Form 4547 once it becomes available. The White House has said families who sign up will receive instructions later this year, and a dedicated website for registration is planned.
Supporters of Trump Accounts argue the program introduces more families to the stock market and gives children born into poverty a chance to benefit from long-term investment growth.
They also frame the accounts as a response to the growing popularity of socialist policies, emphasizing individual investment and private market participation. In 2022, about 58 percent of U.S. households owned stocks or bonds, though the wealthiest 1 percent held nearly half of all stock value.
Critics say the program does little to help children during their earliest and most vulnerable years, when families are most likely to struggle financially. They also argue the accounts fail to offset cuts to programs like food assistance and Medicaid that were included in the same legislation.
Because wealthier families are better positioned to make the maximum contributions, opponents warn the program could ultimately widen the wealth gap. Even with modest growth, a $1,000 investment earning a 7 percent annual return would grow to about $3,570 over 18 years without additional contributions.
