The White House unveiled new operational details for the upcoming "Trump Accounts," a federally-backed savings program for children, highlighting significant philanthropic commitments from billionaires Ray Dalio and Michael Dell. The accounts, created by legislation passed in July and set to launch in mid-2026, aim to provide a wealth-building foundation for millions of American youth.

Treasury Secretary Scott Bessent announced that hedge fund founder Ray Dalio and his wife Barbara have joined a "50-state challenge" to support the initiative, following a landmark $6.25 billion pledge from Michael and Susan Dell earlier this month. The Dalios' donation will provide $250 each to approximately 300,000 children in lower-income Connecticut ZIP codes. "The compound growth from Treasury’s initial seed money alone stands to make young Americans wealthy," Bessent asserted.

Account Structure and Government Seed Funding
Formally known as Section 530A accounts, the program allows any legal guardian to open an account for a U.S. citizen child under 18 via an IRS form or, starting in 2026, the dedicated website trumpaccounts.gov. The core federal benefit is a one-time $1,000 Treasury deposit for children born from 2025 through 2028, with no income restrictions. Children born before 2025 may qualify for a $250 philanthropic grant if they live in a lower-income area, potentially benefiting up to 25 million children according to advocacy group Invest America.

Investment options within the accounts will be tightly restricted to low-cost, broad U.S. equity index funds with annual fees capped at 0.1% and no use of leverage. While a website mock-up displayed individual tech stocks, official guidance specifies a "diversified portfolio of low-cost index funds." The government projects substantial growth, estimating that the initial $1,000 deposit alone could grow to about $5,800 after 18 years based on historical S&P 500 returns, though advisors caution about the inherent volatility of an all-equity approach.

Aims and Uncertainties in Addressing Wealth Inequality
The program is positioned as a tool to help narrow the racial wealth gap and promote financial inclusion, addressing low participation in existing plans like 529 college savings accounts. However, key details remain undefined, including the precise definition of a "qualified index" for eligible funds. The success of the initiative will hinge on effective public uptake, the long-term performance of equity markets, and the program's ability to navigate the investment risks it explicitly carries, requiring guardians to be comfortable with market fluctuations as balances "rise and fall."