‘A BETTER SHOT’: Trump announces $6.25 billion Dell donation toward new savings account for American children
WASHINGTON (KWTX) — President Donald Trump announced Tuesday a historic $6.25 billion charitable commitment from philanthropists Michael and Susan Dell toward a new savings program for American children.
Trump Accounts are tax-advantaged savings accounts created through the Working Families Tax Cuts Act that aim to give every newborn child a head start toward financial security, according to the White House.
“This will give millions of children, middle class families a stake in American prosperity, a benefit from the rising stock market and a better shot at the American dream,” Trump said during the announcement Tuesday.
The program comes as the child poverty rate was reported as 14.3% in 2024, according to the Congressional Research Service.
The accounts will be available to every U.S. citizen born between Jan. 1, 2025, and Dec. 31, 2028, the White House confirmed. Each account starts with a one-time $1,000 government contribution, and families can add up to $5,000 annually.
The money gets invested in broad stock market index funds and remains under guardian control until the child turns 18. If fully funded and left untouched, the accounts could grow to as much as $1.9 million by age 28, according to the White House.
“This is a pro-family initiative that will help millions of Americans harness the strength of our economy to lift up the next generation. And they’ll really be getting a big jump on life,” Trump said.
The Dell donation will provide the first 25 million American children age 10 and under living in areas with median incomes below $150,000 an additional $250, according to the announcement.
How the accounts work
Any child under 18 with a Social Security number can open a Trump Account, but parents or guardians must set up and manage it until the child turns 18, the White House confirmed.
The accounts can only be invested in broad U.S. stock market index funds that track the overall market, don’t use leverage and charge no more than 0.10% in annual fees, according to the White House.
Money cannot be withdrawn before age 18, except for rollovers to another Trump Account or certain transfers to an ABLE account. After 18, the accounts function like traditional IRAs with standard withdrawal rules, according to the announcement.
Who can contribute
Children, parents, grandparents, family members, friends and employers can all contribute to the accounts, the White House confirmed. Employers can contribute up to $2,500 per employee per year through cafeteria plans, with the first $2,500 excluded from the employee’s income.
Charitable organizations and government entities can also make contributions for groups of children that don’t count toward the $5,000 annual limit, according to the White House.
Timeline and setup
Parents can file IRS Form 4547 to establish an account, including with their 2025 tax return, according to the announcement. Beginning in mid-2026, elections can also be made online at trumpaccounts.gov.
Contributions to Trump Accounts will begin July 4, 2026, the White House confirmed. All accounts will initially be held with Treasury’s designated financial agent, but parents can later transfer the full balance to their preferred brokerage firm.
The program includes safeguards to prevent fraud, requiring valid Social Security numbers and limiting the $1,000 government contribution to U.S. citizens born between 2025 and 2028, according to the White House.
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