WASHINGTON ‒ Michael Dell, founder and CEO of Dell Technologies, is contributing more than $6 billion to President Donald Trump's new accounts for newborn babies ‒ and the president wants others in the business world to follow the billionaire tech executive's lead.

Dell is set to join Trump in the Oval Office on Tuesday, Dec. 2 to announce the donation, the White House confirmed to USA TODAY, a move expected to add $250 to about 25 million "Trump accounts." The money will be on top of the $1,000 in federal dollars that is acting as seed money to get the accounts started.

Under the program, American children born between 2025 and 2028 will be eligible for a one-time $1,000 contribution from the federal government per toddler to go into a mutual fund or index fund that is tied to the performance of the stock market. Parents will be able to begin contributing to the accounts in July of 2026.

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

"Trump accounts" were created by the president's mega law known as the One Big Beautiful Bill, which Republicans in Congress passed in July. They are effectively individual retirement accounts (IRAs) for children, with the goal to encourage children and families to save and build wealth.

To qualify, a baby only needs a Social Security number. There are no income restrictions. Parents and others may contribute up to $5,000 a year into the accounts until the child turns 18. An employer may contribute up to $2,500 toward the $5,000 cap. State and local governments and private charities will be allowed to make broad contributions.

Qualified withdrawals, including for education expenses or credentials, a down payment on a first home or as capital to start a small business, will be taxed at the long-term capital-gains rate.

Dell attended a White House event in June to hear Trump tout the "Trump accounts" weeks before passage of the mega bill. Dell Technologies, Salesforce, Uber and Goldman Sachs were among companies that the White House at the time said pledged to make investments into accounts for the children of their employees.

The accounts were originally proposed by Republican Sen. Ted Cruz of Texas in the "Invest America Act."

"Inspired by President Trump's signing of the Invest America Act, Susan and I are thrilled to be contributing $6.25 billion to seed 25 million additional accounts for American children ‒beyond the commitment from the US Treasury," Dell said in a statement.

"We see this as an incredibly practical and powerful step to help more American families, a timely way to turn the country’s growth into opportunity for every child," Dell said. "We know a financial head start can instill confidence and give young Americans the momentum that shape their own future. If every child can see a future worth saving for, we’ll build hope and prosperity for generations to come."

The Treasury Department and IRS on Tuesday are also set to publicize formal guidance for the implementation of the “Trump accounts.”

The White House has been working to highlight portions of the One Big Beautiful Bill set to go into effect in the coming year.

Besides the Trump accounts, the law also extended Trump's 2017 tax cuts, ended taxes on tips, allocated billions in border-wall funding and cut Medicaid and food stamp benefits through new eligibility requirements.

Reach Joey Garrison on X @joeygarrison.

This article originally appeared on USA TODAY: Michael Dell to pump $6 billion into 'Trump accounts' for newborns

Reporting by Joey Garrison, USA TODAY / USA TODAY

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