It’s a rare moment when a new government program promises to touch the lives of millions of American families, but that’s exactly what’s set to happen with the launch of “Trump Accounts.” Announced as part of President Donald Trump’s One Big Beautiful Bill Act, these tax-advantaged savings accounts are designed to give every child born in the United States between January 1, 2025, and December 31, 2028, a financial head start. The program, which will officially begin in 2026, is being hailed as a generational investment in the country’s youth, with a $1,000 federal deposit for every eligible newborn—and a major philanthropic boost from tech billionaire Michael Dell and his wife, Susan.
The Dells’ commitment, announced on December 2, 2025, is staggering: a $6.25 billion donation that will add another $250 to the accounts of roughly 25 million children. According to Bloomberg, Michael Dell is the 11th richest person in the world, and his pledge is meant to “go beyond the commitment from the US Treasury.” In their statement, the Dells said, “If there’s one investment that never stops growing, it’s investing in children. They are our future. From our years of experience in supporting education, health and financial stability programs, we know that this program will give young Americans more than a savings account. It will give them momentum. It will give them confidence and opportunity.”
So, what exactly is a Trump Account? According to reporting from Chase and Schwab.com, it’s a new type of savings and investment account created through the One Big Beautiful Bill. The core idea is simple: give children a financial boost at birth, encourage families to save, and help build wealth that lasts into adulthood. Each qualifying child—meaning any U.S. citizen born in the specified four-year window with a Social Security number—will receive a $1,000 federal grant deposited at birth. Thanks to the Dells’ donation, about 25 million of those accounts will see their starting balance increased to $1,250.
The accounts are structured to maximize long-term growth. According to the Treasury Department, the funds must be invested in low-cost stock index funds, such as those tracking the S&P 500. This means that, rather than sitting idle, the money will grow alongside the broader stock market. The Schwab Center for Financial Research ran the numbers: if parents and others contribute the maximum $5,000 per year to a Trump Account from birth until the child turns 17, the account could be worth $191,035 by age 18. If left untouched until retirement at age 60, the balance could swell to $2.2 million, assuming no withdrawals along the way. Of course, as Schwab cautions, “individual situations will vary and the figures are not intended to be reflective of results you can expect to achieve.”
Parents, employers, and even state and local governments or private charities can contribute to a Trump Account. The law allows for up to $5,000 in annual contributions per child, with employers able to chip in as much as $2,500 of that amount. There are no income restrictions for eligibility—every newborn who is a U.S. citizen and has a Social Security number qualifies. However, no contributions can be made until July 2026, when the program officially opens. At that point, parents or legal guardians will likely be able to opt in by checking a box on their federal tax return, after the child’s birth registration and Social Security issuance.
Withdrawals from Trump Accounts are generally prohibited until the child reaches 18, at which point the account is converted into a vehicle resembling a traditional Individual Retirement Account (IRA). Qualified withdrawals can be made for education expenses, a first home down payment, or even to start a small business. Alternatively, the funds can be left to grow until retirement age—currently set at 59 1/2. The Senate, in its review of the bill, restructured the accounts to mirror the rules of conventional IRAs, adding another layer of long-term financial planning to the mix.
The program has drawn both praise and criticism. Supporters see it as a bold new way to help young Americans build wealth and gain financial literacy. “Trump Accounts represent a potentially valuable tool for building up savings and tapping the power of compound growth for the young,” Schwab.com reported. Neal Ringquist, executive vice president of the Retirement Clearinghouse, called it “an 18-year head start to retirement.” Treasury Secretary Scott Bessent, in a statement from September 2025, said, “These accounts are an opportunity for children to learn how to invest and grow their money through real-world experience, giving the next generation a jumpstart in establishing financial security.”
On the other hand, some analysts have pointed out that the U.S. tax code already offers “at least 11 different tax-advantaged savings vehicles, each with different rules, limitations and regulations,” according to the Tax Foundation. For families whose main goal is saving for education, a 529 education savings account “offers more flexibility and tax benefits,” the Foundation noted. These critics argue that adding another savings vehicle could complicate the landscape for families trying to make the best financial decisions for their children.
Still, the scale and ambition of Trump Accounts are hard to ignore. President Trump, who signed the One Big Beautiful Bill Act into law in July 2025, has called on other business leaders to follow the Dells’ example and help expand the program’s reach. Michael Dell echoed this sentiment in his announcement: “Inspired by President Trump’s signing of the Invest America Act, Susan and I are thrilled to be contributing $6.25 billion to seed 25 million additional accounts for American children—beyond the commitment from the US Treasury. We see this as an incredibly practical and powerful step to help more American families, a timely way to turn the country’s growth into opportunity for every child.”
Details on the program’s rollout are still being finalized, with the Treasury Department and IRS expected to release further guidance in the coming months. For now, parents of babies born in 2025 and beyond can look forward to a new opportunity to invest in their children’s futures—one that starts with a government grant and the potential for millions more in long-term savings. Whether Trump Accounts will ultimately reshape the way Americans think about childhood savings remains to be seen, but the promise of a financial head start is already sparking conversations in households across the nation.
As families and policymakers await the official launch in July 2026, one thing is clear: the Trump Account program marks a dramatic—and, for many, welcome—shift in how the United States seeks to empower its youngest citizens.