Susan Dell's $6 Billion Gamble: Trump Accounts Promise Kids a Fortune — If Parents Play Along

President Donald Trump has unveiled a new savings initiative for American families, promising to create 'Trump Accounts' for children under 18. The plan, announced from the Oval Office, is designed to give the next generation 'a jumpstart on savings'. It has already attracted significant backing from the Dell family, with Michael and Susan Dell pledging $6.25 billion to expand the programme.

The Dell contribution will fund 25 million additional accounts, each seeded with $250, for children who missed the federal government's $1,000 newborn deposit available to babies born after 1 January 2025. Michael Dell is expected to join Trump at the White House to highlight the pledge, which the family described as 'an incredibly practical and direct step to help families begin saving today'.

Mechanics of the 'Trump Account'

The accounts are part of legislation known as the 'One Big Beautiful Bill'. Under the scheme, any child born between 31 December 2024 and 1 January 2029 will receive an initial $1,000 (£790) deposit from the government. Parents can then contribute up to $5,000 (£3,950) per year, while employers may add up to $2,500 (£1,975) annually without affecting taxable income.

The accounts are designed to grow with the stock market, utilising low-fee index funds to maximise returns over an 18-year horizon. According to estimates from the Council of Economic Advisors, a baby born in 2026 could see their account reach $303,800 (£240,000) by age 18 and more than $1 million (£790,000) by age 28 if maximum contributions are made.

However, these projections rely heavily on the power of compound interest and consistent market performance. Without additional deposits from parents or lawyers, the balance would be far smaller, at $5,800 (£4,580) by age 18 and $18,100 by age 28 (£14,300).

Bipartisan Origins and 'Baby Bonds'

Senator Ted Cruz, who helped draft and pass the legislation, said he was proud of the achievement. 'This programme will create fundamental and transformative changes for the financial security and personal freedoms of American citizens for generations,' he noted.

Crucially, the initiative mirrors the 'Baby Bonds' concept long championed by Democrats. Cruz has also joined Senator Cory Booker in urging Fortune 1000 companies to support the accounts, encouraging them to 'champion the accounts' and play a role in shaping the future.

The bipartisan appeal reflects the scale of the initiative, which aims to combine federal funding, private contributions and employer support to build long‑term wealth for children. By framing the policy as an asset-building tool rather than a handout, the administration has secured support across the ideological spectrum.

Risks and Market Volatility

Susan Dell's involvement underscores the private sector's role in the scheme. By pledging billions, the Dell family is effectively betting that parents will contribute consistently and that the accounts will deliver the projected returns. The pledge is framed as a gamble because the ultimate success of the programme depends on participation and market performance.

Critics warn that tethering the financial future of a generation to the stock market carries inherent risks. Economic downturns or prolonged periods of stagnation could severely impact the final value of these accounts, potentially widening the gap between families who can afford to make the additional annual contributions and those who rely solely on the initial government seed money.

Children older than 10 may also benefit if funds remain after initial sign‑ups, according to the Dell Foundation. The family's statement emphasised inclusivity, noting that deposits would reach 'most children age 10 and under who were born prior to the qualifying date'.

Long‑Term Implications

The Trump Accounts are intended to convert into traditional retirement accounts once a child turns 18, creating a pathway to lifelong savings. Supporters argue that the scheme could transform financial security for millions of families, while critics caution that the projections rely heavily on sustained contributions and favourable market conditions.

For Michael and Susan Dell, the $6 billion gamble represents both philanthropy and faith in the system. The accounts may indeed promise children a fortune — but only if parents play along and commit to building the balances year after year.