What you need to know about ‘Trump Accounts’ and Michael and Susan Dell’s $6.25 billion don…

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What you need to know about ‘Trump Accounts’ and Michael and Susan Dell’s $6.25 billion donation

President Donald Trump on Tuesday formally introduced his ‘Trump Account” program with a twist: A multibillion-dollar donation from Michael and Susan Dell would expand the program’s eligibility to more children.

The investment accounts could help tens of millions of American families save for their children. But critics argue they don’t go far enough to solve America’s savings problem.

The federal government will put $1,000 into individual accounts for children born between January 1, 2025, and December 31, 2028.

The family and others may make annual contributions to the account starting on July 4, 2026, so long as combined they don’t exceed $5,000 a year, although nonprofits may be able to donate more. Employers can contribute up to $2,500 of that amount.

Scott Bessent on well-intentioned but ‘very amorphous’ Giving Pledge: Billionaire class in panic

At the DealBook Summit hosted by the New York Times’ Andrew Ross Sorkin, Treasury Secretary Scott Bessent criticized the Giving Pledge, calling it “very amorphous,” while at the same time hailing the “incredible gift” from Michael and Susan Dell, who donated $6.25 billion of their fortune to fund “Trump Accounts” for young children.

Bessent, who had a legendary decades-long career in the financial services industry, including many years at Soros Fund Management, dialed back the clock to 2008 and what he saw on the front lines of the Global Financial Crisis (GFC) to explain what he sees as a pivotal moment in philanthropy.

Michael and Susan Dell to donate $6.25 billion to fund 'Trump accounts' for 25 million U.S. kids

Michael and Susan Dell announced Tuesday that they have committed $6.25 billion to fund investment accounts for some 25 million American children.

The couple's donation will be the largest ever devoted to American children, according to Invest America, a nonprofit advocacy group partnered with the Dells.

"It's designed to help families feel supported from the start and encourage them to keep saving as their children grow," Michael Dell, founder and CEO of Dell Technologies, told CNBC in an interview. "We know that when children have accounts like this, they're much more likely to graduate from high school, from college, buy a home, start a business and less likely to be incarcerated."

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