(NewsNation) — Billionaires Michael and Susan Dell pledged billions Tuesday to provide 25 million American children an incentive to claim new investment accounts created as part of President Donald Trump’s tax and spending legislation.
In a move that appears to be growing in the Republican Party, Lt. Gov. Dan Patrick on Wednesday proposed a state program to give every baby born in Texas $1,000, which would be invested in the stock market.
Here’s what we know about Trump’s program, dubbed “Trump Accounts,” and how it’s expected to work:
Under the federal plan, which was first pushed by Texas Republican Sen. Ted Cruz, the U.S. Treasury will deposit $1,000 into investment accounts for American children whose parents claim the benefit. To be eligible for the seed money, a baby must be a U.S. citizen, have a Social Security number and be born between Jan. 1, 2025, and Dec. 31, 2028. Children won’t be able to access the money in their accounts until they turn 18.
The Dells’ donation pledged $6.25 billion to bolster the federal program and provide $250 to each qualified child under 10. The Dells’ accounts will not launch until July 4, 2026.
Children older than 10 may receive funding after initial signups, if money remains, according to Invest America.
Who is eligible for a Trump Account?
The investments are expected to reach up to 80% of children across 75% of the nation’s ZIP codes, according to an Invest America fact sheet.
Children eligible for the gift must live in a ZIP code with a median household income below $150,000.
How do I open a Trump Account for my kids?
The accounts won’t be open for contributions until July 2026. But parents of eligible kids can sign up now by filling out Form 4547 from the Internal Revenue Service. As of Tuesday afternoon, that form was not yet available on the Trump Accounts website.
In May, parents who sign up will receive information on how to complete the process of opening an account. Beginning in July, the White House said it will have a website where parents can register for the accounts.
Can parents contribute to Trump Accounts?
Parents can contribute up to $2,500 annually in pretax income, much like they do for retirement accounts. Parents’ employers, relatives, friends, local governments and philanthropic groups can also pitch in. Yearly contributions are capped at $5,000, but contributions from governments and charities don’t count toward that total.
The Associated Press and NewsNation affiliate contributed to this report.