The Trump Accounts

Last month, I ran into Michael Dell at a social event in Texas. Someone came up to him and congratulated him on his upcoming huge philanthropic commitment.

I asked after Michael left the convo, “What’s he doing?”

“Oh, he’s giving billions away to millions of kids.”

“Wow, that sounds awesome.”

The announcement came out on Tuesday that Michael and his wife Susan are committing over $6 billion to give $250 to 25 million children as part of the new Trump accounts for kids. All children born between 2025 and 2028 will receive $1,000 from the federal government in a retirement account that they can access when they reach age 18. Family members, companies, and others can add money which will be invested for the child’s future.

I was on CNN yesterday with Jake Tapper where I was asked what I thought. I said, “It’s free money for kids and families. $1,000 is more than a lot of these kids have on Day 1. So I think it’s phenomenal.”

I’m also excited about these accounts because I expect them to grow and evolve over time. The child tax credit started out as one thing in 1997 and has been modified several times since then, generally increasing in size. I’m sure the same thing will happen here. I think this is going to set off a dynamic where each party is going to want to compete on what babies get.

Some people may be reluctant to praise these accounts because they don’t want to give Trump credit. That’s stupid. If it’s good for people and families, it’s a win regardless of whose name is on it.

Others may be upset because the starting amount is small and the mechanics aren’t ideal. Who cares? This is a start and I expect it to become bigger and smarter over time. Cory Booker, for example, has been a huge champion of baby bonds, which are similar.

I’m excited that we are at the point in America where we think putting money into a baby’s name when they’re born is a great thing to do. In real terms, if you know someone who had a kid this year or is pregnant, you should tell them, “Hey, make sure you claim your $1,000 from the government” by checking a tax form as a new parent. The child just needs a Social Security number. Contributions start in July 2026.

I get asked all the time about the need for Universal Basic Income. This isn’t that, but it’s a start. Any step in this direction should be celebrated.

Offline is coming to Boston this Thursday, Baltimore next week and then back to New York! Come on out and say hello. Email matt@noblemobile.com if you’d like a few free months off of your wireless bill. Every bit helps. Hope your holiday season is going well!