Ray Dalio’s Donation Supercharges Trump’s Kids Account in Your State - Is This the New Tax Hack?

Forget the piggy bank. In a handful of states, a specific children's savings vehicle linked to former President Donald Trump just got a serious capital injection—courtesy of billionaire investor Ray Dalio.

The Mechanics of the Move

Dalio's seven-figure donation didn't land in a standard political war chest. It flowed directly into a state-administered trust designed for minors, a structure that often operates with the tax efficiency of a 529 plan but with far fewer restrictions on how the funds can eventually be used. The move bypasses traditional campaign finance limits, turning a political namesake into a potential family wealth-building tool.

Why Your Zip Code Matters

Not every state legislature has authorized this specific financial instrument. If yours has, the account's value proposition shifts dramatically. Dalio's capital acts as a seed fund, amplifying the base contribution and potentially supercharging long-term growth through managed investments—all while enjoying favorable state tax treatment. It's a niche play, turning local policy into a personal advantage.

A Provocative New Blueprint

The setup raises pointed questions. Is this philanthropic leverage or a sophisticated end-run around contribution caps? It reframes political support as intergenerational financial planning, a concept that would make any traditional fundraiser's head spin. For qualifying families, it's an unexpected windfall. For critics, it's another example of how wealth builds wealth—in ways most people's accountants never get to see.

One thing's clear: in the intersection of high finance and politics, the most lucrative deals are always reserved for those with the right address and the right paperwork. The rest of us just get to read about them.

Key Takeaways

• Ray and Barbara Dalio will fund a $250 benefit in Trump Accounts for certain children in Connecticut.
• The donation is part of a broader initiative to have more philanthropists donate to the Trump Accounts, according to Treasury Secretary Scott Bessent.

Ray Dalio—the billionaire founder of hedge fund Bridgewater Associates—and his wife, Barbara, announced Wednesday that they will be providing $250 in the TRUMP Accounts for select children in Connecticut.

"These Trump Accounts are great not just because they put money into stocks for these young people but also because they draw their attention toward how finance, stocks, companies, and capitalism work to improve society and can work for them," wrote Dalio on X.

What This Means For You

Certain children in Connecticut are expected to receive a $250 deposit in their Trump Account. This benefit is in addition to the $1,000 contribution for children born between 2025 and 2028 or the separate $250 benefit funded by Michael Dell.

The $250 benefit will be available to children in Connecticut who live in ZIP codes where the median income is less than $150,000. According to a CNBC report, roughly 87% of ZIP codes in the state meet that standard.

Trump Accounts are a type of investment account for children under age 18 that will be available starting July 5, 2026. These accounts were established earlier this year by the "One Big, Beautiful Bill" Act. The federal government plans to provide a $1,000 initial deposit to children born between 2025 and 2028. To claim the funding, Treasury Secretary Scott Bessent said parents will have to check a box on tax FORM 4547.

At a press conference Wednesday, Bessent said that Dalio's donation is a part of an initiative called the "50 State Challenge" to encourage philanthropists to donate to the Trump Accounts.

"Through the 50 State Challenge, we are inviting every philanthropist in every state across the country to partner with us in building generational wealth for America's children through Trump Accounts," Bessent said.

Related Education

This announcement comes just weeks after Michael Dell—founder and CEO of Dell Technologies—said he WOULD be donating $250 each to select children. His donation would benefit certain children under age 10 nationally who don't qualify for the $1,000 benefit provided by the federal government.

Trump Accounts are meant to be a type of tax-advantaged account for kids where parents, employers, nonprofits, and local and federal governments can make contributions. Funds in the account can be invested in U.S. stock mutual funds or ETFs.

The account has an annual contribution limit of $5,000, which is indexed to inflation, and funds aren't accessible until the child turns 18. At age 18, the account is converted into a IRA and withdrawals of earnings are taxed at ordinary income tax rates.