‘The 50-state challenge’
Ahead of a White House press conference on Wednesday, an update on trumpaccounts.gov named the Dalios in a section on additional support, along with tech CEO Michael Dell and his wife Susan.
“Ray has joined what we are calling the 50-state challenge,” Treasury Secretary Scott Bessent said.
Approximately 300,000 children in Connecticut will receive $250 each from the Dalios’ commitment. The money will go to those who live in a ZIP code where the median income is less than $150,000, according to a press release following the announcement. About 87% of Connecticut ZIP codes meet that criteria, a CNBC analysis of Census Bureau data found.
Earlier this month, the pilot program got a significant boost when Michael Dell, founder and CEO of Dell Technologies, and his wife, Susan announced a $6.25 billion pledge to help fund the new savings accounts for children. That money is also geared toward lower-income families.
Government investment accounts could help reduce the U.S. racial wealth gap, according to a 2020 Morningstar analysis of so-called “baby bonds,” an investment account funded with a small deposit at birth. These have been introduced by some states and local municipalities.
Currently, only a small percentage of families use 529 college savings plans, another tax-advantaged savings plan for children. Fewer than one-quarter of parents have an account for their children, and 43% had never heard of the option, according to a July survey from Credit Karma.
How to open a Trump account
Any legal guardian — including a parent, adult sibling or grandparent — can open a Trump account on behalf of a child age 18 or younger, as long as the child is a U.S. citizen.
To open an account, the guardian must file IRS Form 4547. The form can be filed separately or with your 2025 tax return. Beginning in mid-2026, you can also make open an account online at trumpaccounts.gov.
Once an account is established, children born in 2025 through 2028 may receive a one-time $1,000 contribution from the Department of the Treasury. There are no income requirements, and everyone is eligible for the Treasury’s seed money.
Children 10 or under and born before Jan. 1, 2025 — who wouldn’t qualify for the $1,000 initial deposit from the government — may also be able to receive $250 from the Dell family grant deposited to their Trump account if they live in a ZIP code where the median income is $150,000 or less.
CNBC analyzed U.S. Census Bureau data for median incomes and population ages for each U.S. ZIP code. Only about 3% of ZIP codes have median incomes above $150,000.
With the additional funds, some 25 million American children could benefit, according to Invest America, a nonprofit advocacy group partnered with the Dells.
Trump account investments
While the new trumpaccounts.gov site shows a mock-up of “Katie’s Trump Account,” with holdings including 1.1 shares of Nvidia and 0.2 shares of Tesla, among others, an “answers” section of the site notes that “funds will be invested in a diversified portfolio of low-cost index funds.”
The investment options for Trump accounts are more restrictive than some other tax-advantaged accounts. For example, assets are limited to “broad U.S. equity index funds,” such as mutual or exchange-traded funds.
Trump account investments must track a “qualified index,” which has not been defined, and annual fees and expenses can’t exceed 0.1%, according to the Treasury. The investments also can’t use leverage, which typically includes debt or borrowing to increase returns.
Other details remain unclear, but these criteria could match about 186 mutual funds and ETFs, according to early December data from Morningstar Direct.
How much Trump accounts could grow
“The compound growth from Treasury’s initial seed money alone stands to make young Americans wealthy,” Bessent said in a press conference on Wednesday.
The revamped Trump accounts website includes growth projections for three scenarios, with families contributing nothing beyond the government’s deposit, or funding an additional $250 or $5,000 per year.
For example, the $1,000 deposit with no additional contributions could grow to $5,800 after 18 years, according to the website. This estimate is based on S&P 500 historical annual averages of over 10% without inflation.
“While not an entirely unrealistic projection, investors should be aware that fully investing in equities comes with a certain amount of risk,” Debra Taylor, chief tax strategist with Carson Group in Franklin Lakes, New Jersey, told CNBC.
“People need to be comfortable seeing their balance rise and fall as markets move, or they may want to consider a less risky investment allocation,” she said.
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