President Donald Trump says more wealthy donors will soon join in. And with the largest philanthropic gift in recent U.S. history—$6.25 billion—the government-backed Invest America accounts for children, often called “Trump Accounts,” are suddenly front and center.

Here’s how the program works, when it starts, who qualifies, and what it could mean for millions of American kids.

1. Who Qualifies?

Trump’s Invest America program gives every U.S. citizen under 18 with a Social Security number access to a federally overseen savings and investment account, available starting July 4, 2026—America’s 250th Independence Day.

Children born on or after January 1, 2025 will automatically receive a $1,000 deposit from the U.S. Treasury at birth.

On top of that, billionaires Michael and Susan Dell have pledged an additional $250 each for 25 million children aged 10 and under who were born before the federal cut-off and live in ZIP codes with median incomes of $150,000 or less.

Parents can sign up eligible children at TrumpAccounts.gov once registration opens. No account setup is required before birth.

The accounts are created under the One Big Beautiful Bill Act, and no contributions can be made before July 4, 2026, per IRS rules.

2. How the Accounts Work

Here’s the breakdown:

• $1,000 government seed deposit for every child born on or after Jan. 1, 2025
• Families and community members can add up to $5,000 per year
• Employers may contribute up to $2,500 annually, exempt from taxable income
• Philanthropic and government contributions are uncapped

Once the child turns 18, they can use the money for approved purposes—tuition, buying a home, or starting a business.

If they don’t withdraw the funds immediately, the account automatically becomes a traditional IRA, allowing investments to continue growing.

Withdrawals for non-approved purposes will be taxed as ordinary income.

According to economists at the Milken Institute, the initial $1,000 deposit could grow to over $8,000 in 20 years, based on historical market returns.

Funds will be invested in S&P 500 index funds or similar U.S.-focused mutual funds.

3. When Deposits and Withdrawals Can Be Made

• Withdrawals start Jan. 1 of the year the child turns 18
• Only “qualified” uses are tax-favored
• Employer contributions count toward the $5,000 annual cap
• Annual limits begin adjusting for inflation after 2027

Some government agencies may also contribute to eligible groups of children, as long as they follow IRS-defined criteria.

4. The Dells’ $6.25 Billion Seed Donation

Michael and Susan Dell finalized their record-breaking donation earlier this year, announcing they would fund $250 deposits for 25 million children age 10 and under born before Jan. 1, 2025.

This covers the huge group of kids who don’t qualify for the federal government’s $1,000 newborn payment.

Michael Dell described the inspiration behind the gift:

“When I was eight years old, I opened a passbook savings account with about $8 in it. I saw the power of compound interest early in my life, and hopefully this inspires the same kind of opportunity for millions of young Americans.”

The Dell Foundation, created in 1999, has long focused on boosting opportunities for families and funding global pathways out of poverty.

5. Investing in America’s Future

President Trump called Trump Accounts the nation’s first true trust fund for American children, saying the funds will grow throughout childhood and be controlled by the children’s guardians.

Sen. Ted Cruz, who helped draft the legislation, said the program could shift how young people view capitalism. His example:

“In ten years, a kid will check his Trump Account and realize: ‘I own $50 of Apple… $100 of Dell… $75 of McDonald’s.’ Every child becomes an owner of America’s biggest companies.”

6. More Billionaire Donors Expected

Both Trump and Dell say more mega-donors are likely to follow.

Dell revealed he has spoken to several wealthy philanthropists who understand “the incredible impact” these accounts could have.

Trump added that many wealthy friends have pledged future contributions—and some even plan to leave money to Trump Accounts in their wills.

“I’d be shocked if anyone turns us down,” Trump said. “We’re going to have a lot of big contributors.”