Michael Dell hails Trump Accounts as donor push grows

Trump Accounts are tax-deferred investment savings accounts for American children under 18. Their purpose is to give children an early connection to investing, ownership, and the stock market. The program also aims to help children see how savings can grow over time.

The initiative launched on July 4. It offers a one-time $1,000 contribution from the US Treasury for every child born between 2025 and 2028. The accounts are open more broadly to all American children under 18, and private donors can add money or investments.

About 9 million accounts are already open. The program is on track to create accounts for all 70 million children under 18 nationwide using Social Security data. Donors and employers are also adding contributions, potentially widening children’s early exposure to investing.

Donors are adding substantial private support to Trump Accounts. Brad Gerstner is contributing $250 to accounts for more than 140,000 children in Indiana. Ray Dalio and his wife, Barbara, are making similar $250 contributions for children across Connecticut.

The largest listed commitment is from SpaceX President and COO Gwynne Shotwell and her husband, Robert. They are donating one share of SpaceX stock to each of more than 2 million children. The gift is valued at roughly $325 million and targets children ages 11 to 17 in lower-income communities.

These contributions supplement the government’s program rather than replacing it. Michael and Susan Dell have also pledged $6.25 billion for $250 contributions in lower- and middle-income ZIP codes. The donor effort is being organized through Invest America, led by Gerstner.

Trump Accounts have already reached millions of children. According to the article, roughly 9 million accounts are currently open. That figure shows the initiative has moved beyond a proposal and into active enrollment and funding.

The planned national scale is much larger. The program is on track to automatically create accounts for all 70 million children under 18 in the United States. This includes children who may not yet have claimed an account themselves.

Social Security data is expected to support that expansion. The article says the automatic creation process is planned within the coming month. If completed, the program would give every American child under 18 an account, while government, donors, and employers could add contributions. That broader participation could make investing a more familiar part of childhood for millions of families.

If contributions remain invested for many years, children’s savings could grow through compound growth. That means investment gains can remain invested and potentially generate additional gains over time. Tax deferral can also allow money to stay invested without immediate taxation on certain account activity, depending on the program’s rules.

For example, a child could receive the government’s contribution, donor money, or an investment such as a SpaceX share. If the investment increases in value and remains invested, later growth could build on earlier growth. The article connects the program with children learning investing and seeing compounding firsthand.

The outcome is not guaranteed. Investments can rise or fall, and the article provides no projected returns. Still, starting in childhood gives contributions more time to remain invested. With government, private, and employer payments continuing, accounts could become meaningful long-term savings resources for many children.

Social Security records are being used as the national data source for identifying children who should receive accounts. The article says Trump Accounts are on track to be automatically created for all children under 18 using Social Security data. This approach is intended to reach families beyond those who have already claimed accounts.

The article does not describe the technical steps or explain what information families must provide. It does state that roughly 9 million accounts are currently open and that automatic creation for all 70 million children under 18 is planned within the coming month.

Using the records could make the program broader and faster than relying only on individual applications. It could also establish an account for every eligible child, including those whose families have not yet taken action. The article says families with children under 18 should claim their accounts now while additional contributions are made.

Employers are increasingly adding contributions to Trump Accounts to support children’s savings alongside the government’s program. The article describes these payments as an extension of existing 401(k)-style benefits. That means employers can offer another savings-related benefit, this time connected to employees’ children.

The key mechanism is layered funding. The government provides the program’s base structure, while employers can place additional contributions into children’s accounts. Private donors are also adding money or investments. Together, these sources can increase the amount invested for participating children.

The article says employers are increasingly adopting this approach, but it does not give a total number of participating companies or a standard contribution amount. If the trend continues, workplace contributions could broaden the program’s funding base. They could also make children’s investing part of employee benefits, similar in spirit to employer-supported retirement saving.

Tax-deferred investing means taxes on certain investment activity are postponed rather than charged immediately. The money can stay invested during that period. Compound growth means returns are added to the investment, so future returns can build on both the original contribution and earlier gains.

For example, a child’s account might receive the government’s contribution, a donor’s $250, or a SpaceX share. If the investment grows and remains invested, later growth can apply to a larger balance. The article presents this process as a way for children to see compounding firsthand and learn investing early.

Childhood provides a long period for contributions and potential gains to remain invested. That does not remove investment risk or guarantee growth. However, time can give compound growth more opportunity to work. Trump Accounts combine that long horizon with possible government, donor, and employer contributions.