President Donald Trump announced a new initiative called “Trump Accounts” aimed at families with young children. This plan, unveiled on July 4, 2026, will be bolstered by a substantial pledge of $6.25 billion from tech billionaires Michael and Susan Dell. The initiative seeks to create 25 million additional accounts, offering financial support to children who did not qualify for a federally funded newborn account.
The accounts will be seeded with $250 and are available for children born after January 1, 2025. The Dells emphasized that this financial support aims to reach most children aged ten and under who were born prior to this cutoff. In their statement, they noted, “These deposits will reach the accounts of most children age 10 and under who were born prior to the qualifying date for the federal newborn contribution.” Furthermore, funds remaining after initial sign-ups may also benefit older children.
This announcement coincided with GivingTuesday, a day dedicated to charitable giving. The Dells believe their commitment represents the largest single private contribution made to support U.S. children. They stated, “It is an incredibly practical and direct step to help families begin saving today.”
Under the “One Big Beautiful Bill,” the Trump Accounts will be established for American children under 18. Children born after December 31, 2024, and before January 1, 2029, will receive an initial $1,000 deposit from the government, with parents able to contribute up to an additional $5,000 per year. A White House fact sheet from August detailed these provisions.
The Dell family’s donation will officially commence on July 4 to mark the 250th anniversary of U.S. independence. The administration also announced that employers can contribute up to $2,500 annually to these accounts without affecting employees’ taxable income.
Prominent political figures, including Sen. Ted Cruz, R-Texas, expressed support for the initiative. Cruz remarked on the transformative potential of the Trump Accounts, stating, “This program will create fundamental and transformative changes for the financial security and personal freedoms of American citizens for generations.” He recently signed a bipartisan letter with Sen. Cory Booker, D-New Jersey, urging Fortune 1000 CEOs to advocate for the accounts.
The Council of Economic Advisers has projected significant financial growth for these accounts. For example, a baby born in 2026 could see their account balance reach $303,800 by age 18 and $1,091,900 by age 28 if maximum contributions are made. If no contributions occur, the balance could still grow to $5,800 by age 18 and $18,100 by age 28. Upon reaching 18, account holders can convert their accounts into traditional retirement accounts.
The rollout of Trump Accounts represents a significant investment in the future of American children, aiming to foster financial security and stability for families across the nation. As the initiative progresses, it remains to be seen how it will shape the financial landscape for future generations.
