Key facts
- "Trump Accounts," a new investment savings account for children, was launched on July 4.
- Michael and Susan Dell pledged $6.25 billion to the initiative.
- Ray and Barbara Dalio are contributing to children in Connecticut.
- Brad Gerstner is contributing to children in Indiana and is credited with the account's concept.
- The accounts are intended to encourage capitalism and wealth building for the next generation.
On July 4, the federal government officially launched "Trump Accounts," a new investment savings account program for children, with President Donald Trump marking the occasion by ringing a ceremonial bell to open trading on the Nasdaq and New York Stock Exchange. The initiative allows parents to contribute up to $5,000 annually per child, and employers up to $2,500. For children born between 2025 and 2028, the government will provide a $1,000 seed contribution.
Several wealthy individuals have pledged substantial philanthropic contributions to supplement the government's efforts. Michael and Susan Dell committed $6.25 billion, planning to contribute $250 to 25 million children, specifically targeting those 10 years or younger in ZIP codes with a median income of $150,000 or less and born before January 1, 2025. Michael Dell stated, "Together we can make possibility something that every child can count on."
Hedge fund manager Ray Dalio and his wife Barbara are "adopting" Connecticut, pledging $250 to approximately 300,000 children in the state, prioritizing those under 10 in lower-income ZIP codes. Dalio commented, "Barbara and I believe strongly in the importance of equal opportunity and believe this initiative is an important step in that direction."
Brad Gerstner, CEO of Altimeter Capital, is adopting Indiana, planning to contribute $250 to all children under 5 years old in the state, an amount estimated to be in the "tens of millions." Gerstner is also widely credited with originating the idea for Trump Accounts and helped coordinate the Dells' large contribution.