On Tuesday, tech entrepreneur Michael Dell and his wife Susan announced a sweeping new philanthropic initiative: a $6.25 billion commitment to expand access to “Trump accounts,” a new category of tax-advantaged savings accounts designed for American children.

Their donation is intended to help older children who fall outside the eligibility window for the Treasury Department’s upcoming $1,000 government-funded deposits. With the additional support from the Dell family, an estimated 25 million children born before January 1, 2025 — all age 10 or younger — may qualify for a $250 contribution into a Trump account, according to Invest America, a nonprofit collaborating with the Dells.

Michael Dell, founder and CEO of Dell Technologies, told CNBC that the program aims to “give families a sense of financial momentum from the start and inspire continued saving as their children grow.”

To receive the $250 grant, children must live in a ZIP code where the median household income is $150,000 or below.

This massive philanthropic gesture was unveiled on Giving Tuesday, a day that consistently draws significant charitable participation in the United States. Last year, about 36.1 million adults contributed to Giving Tuesday efforts, generating a record $3.6 billion in donations, according to estimates from GivingTuesday Data Commons.

How the New Trump Accounts Operate

The Trump account system emerged from President Donald Trump’s recently passed “big beautiful bill,” approved by Congress in July. Under the new law, any individual can open one of these accounts for a child aged 18 or younger. Children born from 2025 to 2028 will automatically receive a one-time $1,000 government seed deposit, with no income restrictions for families as long as the child is a U.S. citizen.

The scale of the initiative is enormous. In 2024 alone, approximately 3.6 million babies were born in the United States, according to preliminary data from the CDC’s National Center for Health Statistics.

The structure of Trump accounts resembles a 529 plan in that they promote early savings for long-term goals. Contributions can come not only from families but also from employers, state and local governments, or nonprofits.

During the White House’s “Invest America” roundtable in June, Dell pledged to match the government’s seed deposits for the children of his employees. Several other CEOs in attendance also agreed to support account contributions for their workforce.

Account balances will be invested in low-cost index funds, including mutual funds or exchange-traded funds. However, asset managers have raised concerns that the legislation’s wording may inadvertently restrict the range of investment options. Industry groups have asked the Treasury Department to adopt a broader interpretation to avoid limiting families’ choices.

Initially, the Treasury Department’s designated financial agent will manage all Trump accounts. Later on, parents or guardians will have the option to transfer the account to a brokerage firm.

Brad Gerstner, CEO of Altimeter Capital and an early advocate for the program, said on CNBC’s “Squawk Box,” “Our goal is to give every child in America a private prosperity account.”

Claiming the New Funds

Although Trump accounts are not yet active, the rollout is planned to begin on July 4, 2026. At that point, parents and others will be allowed to contribute up to $5,000 per year in after-tax dollars until the year before the child turns 18.

Trump emphasized Tuesday that accounts will eventually be created automatically at birth, ensuring that families do not miss out due to administrative barriers.

A preliminary IRS form released this week outlines the process for families to open a Trump account and claim their $1,000 seed deposit. By mid-2026, families are expected to be able to complete this process online via a dedicated government website.

Funds cannot be withdrawn until the beneficiary turns 18. At that time, the balance will be transferred into an individual retirement account. The young adult can then use the savings for education and training, a first-home down payment, or capital for a small business—or leave the funds invested for retirement.

From a taxation standpoint, Trump accounts function similarly to IRAs. Earnings grow tax-deferred, and distribution rules will reflect the mix of after-tax contributions, government deposits, and investment gains.

Treasury and IRS officials released more details on Tuesday, but questions remain, including how families can claim the Dell family’s $250 grants. That information has not yet been clarified.

What It Means for Low-Income Families

Financial experts say that while the $250 contribution is a positive gesture, it may not be transformative for families with limited resources.

Ben Henry-Moreland, a certified financial planner at Kitces.com, noted that “meaningful impact will require a larger volume of contributions over time.” Public awareness and education, he added, will play a critical role in whether these accounts succeed, particularly among households that are not accustomed to regular savings.

The Aspen Institute highlighted automatic enrollment as a key factor in ensuring that children from low- and moderate-income families benefit from the program. In a previous analysis, the organization emphasized that proactive Treasury involvement will be essential to reaching the families who need support the most.

“Our recommendation is that Treasury prioritize automatic enrollment,” researchers wrote. “The program’s success for young people from low-income backgrounds depends heavily on this design choice.”