Money & Policy
Dell Technologies founder Michael Dell is defending the new rules on Trump Accounts stock donations, saying it is hard to see how children could be harmed by owning a share of a major company. He spoke on Wednesday in an interview with Yahoo Finance, as critics question what happens when wealthy donors can give company shares instead of cash to children’s investment accounts.
Treasury and the IRS now allow certain publicly traded stock to be given to Trump Accounts through qualified donors. SpaceX President Gwynne Shotwell is the only donor reported to have announced a major stock gift so far. Critics worry about concentration in one company and possible market or tax motives. Dell says the alternative is that children get nothing.
What Michael Dell Said About the Stock Gifts
Dell, a philanthropist who has pledged billions to the program, pushed back on the idea that giving children shares could be part of a hidden scheme. In his view, the choice is simple: either a child receives a small stake in a company, or the child receives nothing. He called a “devious plot” to influence millions of children unlikely.
He also argued the gifts could help young people learn. A child who holds a share may become curious about space, markets, compounding and investing, he said, and that interest could carry into adulthood.
How the New Rules for Trump Accounts Stock Donations Work
Trump Accounts were created by the One Big Beautiful Bill Act as tax-advantaged accounts for children. Until recently, the money had to go into low-cost index funds. The Treasury Department and the IRS released temporary regulations known as T.D. 10056 on Sept. 29, according to a KPMG tax summary. They define “qualified stock” as shares that are publicly traded, issued by a U.S. company and free of earlier transfer restrictions.
The rules also set a waiting period. Ascensus reported that contributed stock generally cannot be sold until five years after the contribution or the end of the child’s growth period, whichever comes first. The growth period ends on Dec. 31 of the year the child turns 17.
Donations must come through eligible givers, such as a qualifying charity, and must name a group of children to receive them. KPMG says those groups can be based on age, location or birth year.
The SpaceX Gift Behind the Debate
The best-known of the Trump Accounts stock donations so far comes from Gwynne Shotwell, SpaceX’s president. Quartz reported that she and her husband would donate part of their SpaceX holdings to Trump Accounts for more than two million children aged 11 to 17 in lower-income areas. Based on a closing price of $162 per share, Barron’s valued the pledge at more than $324 million, Quartz said.
The Next Web described the gift as one share for each of roughly two million children, with an emphasis on lower-income Texas families. The Yahoo Finance report describes the pledge as more than two million shares, so the exact structure is described differently across outlets. Readers should look for official confirmation of the final terms.
Concerns Raised by Critics
Critics of Trump Accounts stock donations say the change could tie a child’s long-term financial security to a single company instead of the wider economy. Some have also raised ethical questions, including whether very large donors could use big stock transfers to move prices or gain tax benefits.
Tax analysts have also pointed to open questions. A JD Supra legal analysis, written before the new regulations, said the estate and gift tax treatment of contributions was unresolved. The temporary regulations expire three years after Federal Register publication, and the proposed version is open for public comment, according to KPMG.
Dell’s Own Pledge and Employer Support
Michael and Susan Dell have committed $6.25 billion to deposit $250 into the accounts of 25 million children. Dell said more than 10 million children have received the money so far, representing $2.6 billion, and that the full amount is expected to be invested by Friday. The IRS cited the pledge as evidence of donor interest, Thomson Reuters Tax & Accounting reported.
Dell expects more Trump Accounts stock donations and other gifts to follow. He said more philanthropists are likely to join, and that many employers are matching the government’s contribution or giving larger amounts to the children of their workers and to children in communities where they operate.
What to Watch Next
The next steps are likely to be public comments on the proposed regulations and any further donor announcements. Whether more Trump Accounts stock donations from billionaires follow Shotwell’s remains unclear, and no other major stock pledge was reported in the Yahoo Finance story.
Frequently Asked Questions
1Who is Michael Dell?
He is the founder of Dell Technologies and a philanthropist. He and his wife, Susan, pledged $6.25 billion to fund Trump Accounts for children.
2What changed for Trump Accounts?
Under temporary regulations released Sept. 29, qualified stock can now be contributed through eligible donors. Contributions were previously limited to cash invested in index funds.
3Can the donated stock be sold right away?
Generally no. Ascensus reports that it cannot be sold before the earlier of five years after contribution or the end of the child’s growth period.
4What is the SpaceX donation?
Gwynne Shotwell and her husband pledged SpaceX stock for more than two million lower-income children aged 11 to 17. Reports value it at over $320 million, though outlets describe the share count differently.
5What do critics worry about?
They say a child’s savings could depend on one company, and that large donors might use stock transfers to influence prices or gain tax benefits.
