What Are Trump Accounts? President Unveils New Savings Sc...

By Alia Shoaib

News Reporter

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President Donald Trump is scheduled to make an announcement at 2 p.m. ET on Tuesday about the creation of so-called 'Trump accounts,' a new savings initiative aimed at helping American children build financial assets from an early age.

Michael Dell, the CEO and founder of Dell Technologies, is due to join Trump at the White House on Tuesday to discuss a $6.25 billion donation to the accounts made by him and his wife Susan, USA Today reported.

Newsweek contacted the White House via email on Tuesday outside of regular working hours.

Why It Matters

The private philanthropy-backed initiative is among the largest federal programs aimed at children and could provide a financial foundation for millions of American children.

What To Know

"The president will make an announcement in the Oval Office on his initiative to create Trump accounts to give the next generation of Americans a jump start on savings," White House Press Secretary Karoline Leavitt said in a press briefing on Monday.

"It will be a very exciting announcement indeed, especially for all of the parents across the country with young children and babies."

Trump accounts were created under this year’s One Big Beautiful Bill Act and will be able to be opened for any child under 18 with a Social Security number.

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For children born in 2025 through 2028, the federal government will seed every account with a $1,000 grant.

The accounts can only be used to invest in low-cost, diversified U.S. stock index funds, and operate in a similar way to an Individual Retirement Account (IRA), with withdrawals restricted until the child turns 18.

The Dells announced on Tuesday that they would donate $6.25 billion towards the accounts.

This money will contribute $250 each to about 25 million children under the age of 10, who were born before the window to be eligible for the federal seed grant.

According to the White House schedule, Trump is due to make the announcement today at 2 p.m. from the Roosevelt Room with the presidential press pool in attendance.

It will come after an 11:30 a.m. cabinet meeting.

What People Are Saying

Michael Dell, founder and CEO of Dell Technologies, told CNBC about the accounts: "It’s designed to help families feel supported from the start and encourage them to keep saving as their children grow," adding that 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."

White House spokesman Kush Desai told USA Today in a statement: "The One Big Beautiful Bill’s Trump Accounts are a revolutionary investment by the federal government into the next generation of American children."

"It's also President Trump’s call to action for American businesses and philanthropists to do their part, too. Michael and Susan Dell’s $6 billion investment into America’s children is the first of many announcements to come for America’s children."