Billionaire Dell family to seed Trump accounts for kids with $250

Tech billionaire Michael Dell and his wife Susan have announced plans to donate $250 to 25 million children across the US.

The $6.25 billion (£4.72 billion) gift will support Trump-branded investment accounts that were approved by Congress as part of the tax and spending bill earlier this year to encourage families to save for their children's retirement.

Under the scheme, children born between 2025 and 2028 are also eligible to receive $1,000 from the government.

The Dells said their gift, intended for children ages 10 and younger, was intended to help replenish those accounts and expand savings opportunities for even more children.

“We've seen what happens when a child gets even a small head start financially—their world expands,” Michael Dell said in a social media video Tuesday announcing the donation.

The money will be channeled through new Trump-branded accounts that can be set up for any child under 18 and are required by law to be invested in a low-cost index fund that reflects the broader stock market.

The Dells said children ages 10 and younger born before Jan. 1, 2025 are eligible for the gift as long as they live in areas where the median income is below $150,000.

The Dells said they expect the gift to reach nearly 80% of children ages 10 and younger in the United States. This is one of the largest ever private donations going directly to Americans.

Mr. Dell, the Dell Technologies chief executive who Forbes estimates is worth nearly $150 billion, said he hopes other philanthropists and employers will make similar commitments.

“This will give middle-class families a share in American prosperity, benefit from a rising stock market and a better chance to achieve the American dream,” President Donald Trump said at a White House event to announce the donations and bills.

He added that children who have such accounts will hopefully “become very rich someday.”

Earlier this year, the White House Council of Economic Advisers estimated that $1,000 could grow to more than $5,800 within 18 years, assuming a 10.3% rate of return.

In the same scenario, $250 could grow to about $1,600, according to online calculators.

While it's not currently possible to create a Trump account, the Treasury Department on Tuesday released a form that parents can use to create an account as part of the tax filing process.

It said more details about how the accounts will be administered will be available next year.

Parents can contribute up to $5,000 to the accounts, which will be adjusted for inflation. Employers, charities and others can also donate to the accounts, which are scheduled to open in July.

The child can access the money at age 18, at which point the account converts to a retirement account. Although the money grows tax-free, withdrawals are subject to taxes and possibly a penalty if taken before age 59½.

Trump's accounts have been met with significant skepticism from critics, who have argued that the accounts will primarily benefit wealthier families who have extra money to save but are less flexible than other existing savings mechanisms.

Treasury Secretary Scott Bessent drew criticism from Democrats earlier this year after he promoted the program as an alternative to government-funded pension benefits, calling it “a back door to the privatization of Social Security.”

The Tax Foundation, a think tank specializing in tax policy, said Trump's bills were “well-intentioned” but would “add another layer to the already overly complex system of savings accounts in the United States.”

“Trump accounts offer little incentive to save,” it added. “Rather, the primary benefit comes in the form of an initial $1,000 deposit from the federal government and any contribution employers choose to make.”

New father Grayson Chester said that's how he feels about it.

The Seattle tax lawyer said other savings plans, such as an education-focused 529 plan, seem like better options for now. But that won't stop him from getting $1,000 from the government.

“I'll happily take $1,000 and happily keep it invested,” said the 35-year-old, whose first child was born two months ago. “As to whether I'll contribute my own money, that's a tough question and I don't see any benefit right now.”

But he noted that charitable donations like the one Dells announced, to which his son may be eligible, could make the program more attractive to parents like him. Dell Technologies is also among the employers committing to contribute to employee accounts.

“Anything that looks or feels like free dollars on the table will always be worth it,” Mr. Chester said.