Michael Dell unveils $6 billion gift to 'Trump accounts' at White House

Core Points - Michael Dell and his wife Susan announced a $6.25 billion donation to support new savings accounts for children, termed "Trump accounts," aimed at low- and middle-income families [1][2] - The accounts will receive $250 increments for 25 million children aged 10 or younger, supplementing the $1,000 in federal funds authorized for newborns [2][5] - The initiative is designed to encourage contributions from family, friends, and companies, with the potential for additional annual contributions from parents and employers [3][4] Financial Structure - The accounts will be funded with private donations and federal dollars, with a total of $1,000 for newborns as part of the One Big Beautiful Bill Act [2] - Parents can contribute up to $5,000 annually, while employers can add up to $2,500 [4] - Funds must be invested in low-cost index funds, raising questions about the accounts' ultimate value due to investment restrictions and tax implications on withdrawals [5] Accessibility and Support - Funds become accessible when the child turns 18, intended for education expenses or first home purchases [6] - The initiative received bipartisan support, with notable endorsements from Senators Ted Cruz and Cory Booker, who urged Fortune 1000 companies to contribute [6] - Michael Dell, ranked as the 11th richest person globally with a net worth of $148 billion, has a history of supporting family-focused causes [7]