Recently, the United States witnessed one of the largest single charitable donations in modern history, totaling $6.25 billion. This donation has brought national attention to the Child Investment America Account (Invest America), newly established by President Donald Trump and supported by the government.
This initiative, commonly referred to as “Trump Accounts,” allows all American children under 18 with a Social Security number to open a federally regulated savings and investment account. Under this program, the government will provide $1,000 in seed money for every U.S. citizen born between 2025 and 2028.
Furthermore, American tech billionaire and founder/CEO of Dell Technologies, Michael Dell, along with his wife Susan Dell, recently pledged to provide an additional $250 to 25 million children born before 2025. This contribution from the Dell family has amplified the assistance efforts of the Trump administration.
For parents eager to know when the entire project will commence, the date is easy to remember: July 4, 2026, the 250th anniversary of American independence.
In this article, we will delve into the information about Trump Accounts that the public needs to know, including the potential accumulation value, how other philanthropists can contribute more funds, and most importantly, how to claim Trump Accounts.
Under President Trump’s “Invest America” initiative, every child under 18 with a Social Security number can acquire a federally regulated savings and investment account, which families can activate starting from July 4, 2026.
These investment accounts specifically tailored for children are part of President Trump’s “One Big Beautiful Bill Act.”
Trump Accounts will be accessible on the official website, TrumpAccounts.gov. Only U.S. citizens can create accounts, and parents are not required to set up accounts before their children are born. According to guidance from the IRS, no funds can be deposited into Trump Accounts before July 4, 2026.
Every account for U.S. citizens born between 2025 and 2028 will receive $1,000 in seed money from the government.
As for children born before January 1, 2025, the Dell family’s donation implies that in zip codes with a median household income below $150,000, 25 million children aged 10 and under can receive $250 in initial funds in their accounts.
Parents interested in participating in the Dell family program need to visit the official website, TrumpAccounts.gov, to register eligible children under 10 and ensure all necessary steps are completed.
Children born on or after January 1, 2025, will automatically receive a $1,000 deposit from the Treasury Department at birth. Subsequently, family and community members can contribute up to $5,000 annually to the child’s account. Employers can deposit up to $2,500 for employees’ children annually (counted towards the $5,000 limit), while there is no limit on contributions from charitable organizations or government donations.
When children reach 18, they can withdraw funds for “qualified purposes,” such as paying for education, purchasing a home, or starting a business.
Families registering for Trump Accounts will need to answer questions regarding eligibility and investment aspects. Subsequently, donors and family members can contribute funds to the account.
Upon reaching 18, the funds in the child investment account will automatically convert into a traditional Individual Retirement Account (IRA), where the funds can continue to grow.
Withdrawals for non-designated purposes will be subject to regular income taxation. Economists at the Milken Institute in Washington, D.C. stated that assuming returns mirror historical averages, a $1,000 seed deposit for a newborn could potentially grow to over $8,000 after 20 years.
When children with Trump Accounts turn 18, they can withdraw funds for “qualified purposes,” such as paying for education, buying a home, or starting a business.
Account holders cannot withdraw funds from Trump Accounts before January 1 of the year they turn 18.
As per IRS regulations, certain governmental entities can make qualified general contributions to Trump Accounts, provided that the account beneficiaries fall within the eligible categories.
Employees (and their dependents) can receive up to $2,500 in deposits annually from their employers for Trump Accounts, counting towards the annual $5,000 deposit limit. However, this deposit will not be considered as part of the employees’ taxable income.
The annual contribution limits for Trump Accounts will be adjusted based on inflation starting from 2027.
Funds deposited into Trump Accounts will be invested in mutual funds or exchange-traded funds tracking the S&P 500 index, or in index funds primarily composed of U.S.-based investments.
Earlier this year, the plans for these accounts were finalized, with Dell committing to donate $6.25 billion to these accounts.
On December 2nd, Dell announced that they will provide a $250 seed deposit for children aged 10 and under born before January 1, 2025.
The reason for targeting this specific group of children is that they do not qualify for the federal government’s $1,000 newborn contribution to Trump Accounts.
“Susan and I are thrilled to announce that we will be donating $6.25 billion to 25 million children aged 10 and under in the United States. Our donation will cover the majority of children aged 0 to 2 who are not included in the federal initiative,” Michael Dell stated.
Michael Dell and Susan Dell co-founded the Dell Foundation, and since 1999, they have been working through the organization to “accelerate opportunity for families and build paths that can change lives globally.”
Discussing his investment journey and starting point when announcing the donation, Michael Dell shared, “I opened a savings account with about $8 when I was 8 years old. I went to the savings and loan and gave them 25 cents, and they would stamp my passbook.”
“I learned about the power of compounding very early, and that knowledge has brought me to where I am today. I hope to inspire more young people to have such opportunities,” he added.
President Trump referred to these accounts as the first genuine trust fund for American children and mentioned that the donated and invested funds will grow over their childhood, benefiting them in adulthood.
“These accounts will track the overall stock market, will be privately owned and controlled by the guardians of the children,” he said.
Federal Senator Ted Cruz, who had contributed to drafting relevant legislation, talked about the declining confidence of young people in capitalism in recent years. Establishing these children investment accounts is believed to help counteract this perception decline.
“In ten years, a young boy will take out his phone, open his app, see his Trump Account, and instead of thinking of these massive, evil, frightening companies, he will say, ‘I own $50 worth of Apple, $100 of Dell, $75 of McDonald’s.’ These companies are the largest employers in our country, and every child has become their shareholder,” he expressed.
Both Michael Dell and President Trump expressed that there may be more philanthropists making substantial donations in the future.
The IT industry titan stated that he had spoken with “many other wealthy American philanthropists,” and he believed others would also join in donating because they understand the significant impact such contributions would have on the lives of American youth.
President Trump also mentioned conversations with numerous potential donors and his intention to make a contribution, although he did not specify the timing or amount of the donation.
“Many of my friends have told me they will donate a lot of money,” President Trump said.
He added that many billionaires he spoke with had indicated they would leave money for these designated accounts in their wills.
President Trump mentioned ongoing discussions he is having with various individuals across different sectors, saying, “The progress is great… If someone refuses us, I’ll be shocked. We’ll receive many significant donations.”