In a landmark act of philanthropy, tech billionaires Michael and Susan Dell have pledged a staggering $6.25 billion to support investment accounts for millions of American children. This monumental donation is set to bolster the new "Trump Accounts" programme, a flagship initiative under President Donald Trump's One Big Beautiful Bill Act, scheduled for a nationwide launch on 4 July 2026.
What Are Trump Accounts and Who is Eligible?
The Trump Accounts programme allows any child in the United States under the age of 18 with a social security number to open an investment account. Parents or guardians will manage these accounts. As per the federal plan, the government will automatically deposit $1,000 into the accounts of all children born between January 2025 and 31 December 2028.
The historic contribution from the Dells specifically aims to expand this initiative. Their $6.25 billion pledge will provide approximately $250 per child for at least 25 million children aged 10 and under who fall outside the federal government's birth window. This support will be directed to children living in ZIP codes where the median household income is below $150,000.
Contribution Rules and Account Mechanics
Beyond the government's seed money and philanthropic gifts, the accounts are designed for additional contributions. Children, parents, guardians, extended family, friends, and employers can contribute up to $5,000 per year per account. Philanthropists, charities, state governments, and tribal authorities may contribute without any limits.
The funds in Trump Accounts will be invested in a diversified, low-cost stock index fund managed by private investment firms on behalf of the government. Withdrawals are permitted only once the account holder turns 18. The White House has indicated exceptions for approved uses like higher education expenses or first home purchases, though early withdrawals for other reasons may incur significant tax penalties.
Analysis and Criticism: Will It Reduce Child Poverty?
Despite the scale of the donation, experts express scepticism about the programme's ability to lift children out of poverty. Critics point out that the Trump administration's accompanying legislation includes significant cuts to social programmes like Medicaid and the Supplemental Nutrition Assistance Program (SNAP).
There is concern that immediate, essential support for low-income families is being traded for a long-term investment vehicle that many households may struggle to fund. Amy Matsui of the National Women's Law Center argues the structure risks favouring the affluent. "As currently structured, these accounts will just become another tax shelter for the wealthiest," she told The Guardian, noting that many families struggling with basic costs will find it hard to add extra money to make the seed investment meaningful.
Matsui also highlighted that the law prevents many children in immigrant families from benefiting. Furthermore, questions have been raised about potential pronatalist motives behind the policy, recalling past administration discussions on incentives like 'baby bonuses' to encourage higher birth rates.
The Dell family's donation marks one of the largest charitable gifts in American history, ensuring the Trump Accounts programme will reach a broader demographic of young children. However, the debate continues on whether this investment-focused approach can address the urgent economic challenges facing American families today.
