Michael Dell Donates Billions of Dollars to Trump Children’s Accounts – That’s Who’s Eligible for a $250 Benefit

More children could become eligible for savings accounts after a charitable donation from one of the country’s richest people.

Michael Dell, founder and CEO of Dell Technologies (DELL), and his wife, Susan Dell, plan to donate $6.25 billion to fund Trump’s children’s accounts, according to a statement released Tuesday. The funds will fund 25 million accounts and provide $250 in seed funding for each account.

“We are investing $6.25 billion in America’s children through our philanthropic funds,” Michael Dell said in a prepared statement. “We’ve seen what happens when a child gets a small financial start, their world expands.”

Trump Accounts — first created under the Trump administration’s 2026 federal tax law, the Big Beautiful Bill Act (OBBA) — are a type of investment account available to children under 18.

The calculations are not yet available but will begin in 2026, according to Carl Breedlove, principal tax research analyst at H&R Block. Additionally, taxpayers will not be eligible to make contributions until July 4, 2026.

Details on where the account will be opened and maintained have not yet been released, but the Trump administration has just launched a website with information about the accounts. More updates are expected on December 17.

Who will get $250?

Under OBBA, children born between January 1, 2025 and December 31, 2028 will have $1,000 deposited into their Trump account by the federal government.

Dell’s funding is intended, in part, to provide funds to those who do not qualify for seed money provided by the federal government.

To be eligible for the $250 grant, a child must be 10 years old or younger, born before January 1, 2025, and reside in specified zip codes. According to A New York Times According to the report, funding will be available to those in ZIP codes where the median household income is less than $150,000.

To get an idea of ​​whether your child qualifies, you can enter your zip code into the Census Reporter website and find the median income in your area based on data from the Census Bureau. According to Invest America, the nonprofit behind the Trump campaign, 80% of children under 10 could qualify.

How do Trump accounts work?

Trump accounts offer some tax advantages, but they also come with limitations.

These accounts have an annual contribution limit of $5,000, which is indexed for inflation, and children cannot access the account until they are at least 18 years old. After the child turns 18, the account is converted to a traditional IRA.

Contributions are made after tax (unless the employer makes those contributions) and investment gains are taxed at ordinary income tax rates.

For some parents, these accounts may not be as beneficial as opening a brokerage account for their children, as investment options in Trump accounts are also limited to U.S. stock mutual funds or ETFs.

With a brokerage account, contributions are also made after tax, but investment gains may qualify for a lower tax rate due to the long-term capital gains rate. In addition, brokerage accounts usually do not have restrictions on when you can withdraw funds.

One of the main advantages of Trump accounts is that parents, employers, nonprofits and the government can make contributions. Employers, governments and charities can contribute up to $2,500 tax-deductible. Companies, such as Dell Technologies, have already agreed to fund these accounts for their employees, offering $1,000 per account.

Update, December 2, 2025: This article has been updated to add information released by the Trump administration after publication, including a link to a website for the accounts.