President Trump will be joined by Dell Technologies (DELL) founder Michael Dell on Tuesday afternoon at the White House to unveil a $6.25 billion gift from the businessman to supplement new savings accounts for young children passed into law earlier this year.
Dell’s donation translates to $250 in starter money for about 25 million “Trump accounts” for families in low- and middle-income areas. This private money will be in addition to $1,000 in federal dollars authorized in the One Big Beautiful Bill Act for newborn children as part of an overall program that is set to begin accepting contributions next July.
Dell and his wife, Susan, have long been champions of the program. At an event earlier this year, Trump even credited the businessman with bringing the idea for these accounts to him.
In a social media posting, Dell called it a “very special moment” and “an investment in America’s kids” as he urged other companies to do more to support the program.
“The One Big Beautiful Bill’s Trump Accounts are a revolutionary investment by the federal government into the next generation of American children,” White House spokesperson Kush Desai said in a statement. “Michael and Susan Dell’s $6 billion investment into America’s children is the first of many announcements to come for America’s children.”
The federal dollars set aside by Congress will help start the accounts for newborn children. That money can then be supplemented with contributions of up to $5,000 annually from the child’s parents and other sources, coming from after-tax dollars. Employers will also be able to contribute up to $2,500 of that total.
The accounts are then required to be invested in low-cost index funds.
The massive gift could increase the appeal of these accounts after financial experts have raised questions about their ultimate value, noting the restrictions on where the money can be invested and that the contributions come from after-tax dollars and that eventual withdrawals will also be taxable.
The money becomes accessible after the child turns 18, when the account holder will be encouraged to make withdrawals for education expenses or to buy a first home.
The accounts were also applauded Tuesday by an unusual bipartisan pairing when Sens. Ted Cruz, a Texas Republican, and Cory Booker, a New Jersey Democrat, jointly released a letter to the CEOs of Fortune 1000 companies urging them to support the accounts.
Learn more about high-yield savings accounts, money market accounts, and CD accounts.