Michael & Susan Dell put $250 in 25 million US children’s accounts – When can you take money out of a Trump account?

Michael and Susan Dell have announced a landmark $6.25 billion philanthropic donation to support investment accounts for millions of American children, marking one of the largest charitable gifts in US history. The money will help fund deposits into the new “Trump Accounts” programme, a flagship element of President Donald Trump’s One Big Beautiful Bill Act, which launches nationwide in 2026.

Who is eligible for a Trump account?

Under the scheme, any child in the United States with a social security number and aged under 18 may open a Trump account once the programme goes live on 4 July 2026. Parents or guardians will be responsible for setting up and managing these accounts.

The federal government will automatically deposit $1,000 into the accounts of all eligible children born between January 2025 and 31 December 2028.

Micheal and Susan Dell's donation expands the initiative to younger children who fall outside that federal window. Their $6.25 billion pledge provides $250 per child for at least 25 million children aged 10 and under.

Who can contribute to a Trump account? And how much can they give?

Children, parents or guardians, extended family, friends and employers may contribute up to $5,000 per year per Trump Account, separate from the government’s $1,000 seed deposit.

Philanthropists, charities, and certain public entities – including state governments and tribal authorities – may contribute without limitation.

What about that $6.25bn contribution?

The Dells’ gift will be directed towards children living in ZIP codes where the median household income is below $150,000. Each Trump Account qualifying child will receive around $250, deposited into their investment account once the programme begins.

What happens to the money in Trump accounts?

Funds held in Trump accounts will be invested in a diversified, low-cost stock index fund mirroring the broader market. Private investment firms will manage these accounts on behalf of the government.

When can you take money out of a Trump account?

Withdrawals are only allowed once the account holder turns 18. However, at that point the scheme effectively mirrors a traditional retirement account: early withdrawals for non-approved uses may attract substantial tax penalties.

The White House has said there will be exceptions “such as higher education expenses or first home purchases”. Brokerage firm Charles Schwab has published an explainer outlining the tax implications and permitted withdrawal scenarios.

Will Trump accounts help lift more US children out of poverty?

Experts remain sceptical. The Trump administration’s tax-and-spending legislation includes significant cuts to social programmes such as Medicaid and Supplemental Nutrition Assistance Program (SNAP), prompting fears that immediate support for low-income families is being traded for long-term investment vehicles that many households may struggle to contribute to.

Critics argue the structure of Trump accounts risks favouring affluent families. “As currently structured, these accounts will just become another tax shelter for the wealthiest, while the overwhelming majority of American families, who are struggling to cover basic costs like food, child care, and housing, will be hard pressed to find the extra money that could turn the seed money into a meaningful investment,” said Guardian quoted Amy Matsui of the National Women’s Law Center.

Amy Matsui added: “Moreover, the law prevents many children in immigrant families from benefiting altogether.”

Questions have also been raised about potential pronatalist motives. The administration has previously discussed incentives such as $5,000 ‘baby bonuses’ to encourage higher birth rates.