Michael Dell, the driving force behind Dell Technologies, along with his spouse Susan, has made a significant promise of $6.25 billion to kickstart an innovative federal savings project aimed at America’s youth, called the “Trump accounts.”
Featured in the One Big Beautiful Bill Act, which was approved by President Donald Trump on July 4, this initiative offers every baby born between January 1, 2025, and December 31, 2028, a generous one-time government contribution of $1,000 upon birth. Families can open accounts when the child receives their Social Security number, with the funds being off-limits until the child turns 18.
Parents and other family members can add up to $5,000 each year to these accounts, with a possibility of the limit being adjusted for inflation post-2027.
FINANCIAL BOOST FOR AMERICAN KIDS THROUGH THE ‘BIG, BEAUTIFUL BILL’
According to Michael and Susan, “These investment accounts are designed to be straightforward and secure, growing value through market returns over the years. When these kids turn 18, they’ll have a solid financial base to support education, job training, home buying, or saving for future endeavors. It’s a simple yet impactful concept.” This vision is what motivated them to support the program for even more families.
“Thanks to our charitable funds, we’re excited to inject $6.25 billion that will seed 25 million more accounts with an initial $250 each. These funds will benefit numerous children aged 10 and younger born before the eligibility cutoff for this federal newborn contribution,” they added.
Trump is expected to unveil further details about this program on Tuesday.
‘TRUMP ACCOUNTS’ COULD AMASS $1.9 MILLION BY ADULTHOOD, SAYS TREASURY
According to Treasury estimates, the “Trump accounts” have the potential to evolve into substantial retirement savings for kids if fully funded and maintained. Projections suggest that by the age of 28, these accounts could reach as high as $1.9 million, should they be maximized over time.
Even under modest returns, the savings account might still accumulate close to $600,000 in similar period. Without any extra contributions from family, just with the federal government’s initial $1,000, the Treasury predicts growth to anywhere from $3,000 to $13,800 in 18 years.
Original article source:Michael and Susan Dell donate $6.25B to fund ‘Trump accounts’
