Michael and Susan Dell donate $6.25B to encourage families to claim ‘Trump Accounts’

NEW YORK– Billionaires Michael and Susan Dell pledged $6.25 billion Tuesday to entice 25 million U.S. children under the age of 10 to apply for new child investment accounts created under President Donald Trump’s tax and budget legislation.

This historic gift has little precedent, with few charitable commitments over the past 25 years exceeding $1 billion, let alone several billion. Announced on GivingTuesday, the Dells believe it is the largest private commitment made to America’s children.

Its structure is also unusual. Essentially, it builds on the “Trump Accounts” program, under which the U.S. Treasury Department will deposit $1,000 into investment accounts created by the Treasury for American children born between January 1, 2025 and December 31, 2028. Dell’s donation will use the “Trump Accounts” infrastructure to give $250 to each eligible child under the age of 10.

“We believe that if every child can see a future worth saving for, this program will create something much bigger than an account. It will create hope, opportunity and prosperity for generations to come,” said Michael Dell, founder and CEO of Dell Technologies, whose net worth is estimated at $148 billion, according to Forbes.

Although “Trump accounts” became law as part of the law signed by the president in July, the Dells say the accounts won’t launch until July 4, 2026. Michael Dell said they wanted to mark the 250th anniversary of U.S. independence.

“We want these children to know that not only do their families care about them, but their communities care about them, their government and their country care about them,” Susan Dell said. “And we all want them to have a wonderful future, a bright future, and that it’s accessible to them.”

Under the new law, “Trump accounts” are available to any American child under 18 with a Social Security number and their families can fund these accounts, which must be invested in an index fund that tracks the entire stock market. When children turn 18, they can withdraw the funds to finance their education, buy a house or start a business.

The Dells will put money into the accounts of children 10 and younger who live in ZIP codes with a median family income of $150,000 or less and who will not receive the $1,000 seed money from the Treasury. The Dells hope their donation will encourage families to claim their accounts and deposit more money, even small amounts, so that it grows over time along with the stock market.

President Trump plans to celebrate the pledge later Tuesday, and a White House spokesman, Kush Desai, said Dell’s donation would be the first of many new funding pledges for the accounts.

“The Trump accounts of the One Big Beautiful Bill are a groundbreaking investment by the federal government in the next generation of America’s children,” Desai said. “It’s also a call to action from President Trump for America’s businesses and philanthropists to do their part as well.”

“It’s difficult to give effective dollars at scale, especially to the nation’s neediest children, in a way that you can be sure those dollars will compound as the U.S. economy grows,” said Brad Gerstner, a venture capitalist who advocated for the legislation. “So this is a unique platform created by the government that I think can unlock significant donations.”

Gerstner is also the founder of Invest America Charitable Foundation, which helps Treasury launch the accounts. He explained that the objective of these accounts is to give young people funds to start their lives, but also to help them benefit from the growth of the American economy by investing in stocks.

“Fundamentally, we have to include everyone in the benefits of the American experiment. Otherwise, it won’t last. And so, basically, we think it can reinvigorate people’s belief in the free market and capitalist democracy,” Gerstner said of these accounts.

About 58% of U.S. households owned stocks or bonds in 2022, according to the U.S. Securities and Exchange Commission, even though the richest 1% held nearly half the value of stocks that same year and the poorest 50% held about 1% of stocks.

In 2024, about 13% of children and youth in the United States lived in poverty, according to the Annie E. Casey Foundation, and experts link high rates of child poverty to a lack of social supports for new parents, such as paid parental leave.

While funds from Trump accounts may help young adults whose families or employers can contribute over time, they will not immediately help reduce child poverty. Cuts to Medicaid, food stamps and child care that were also included in the spending package are likely to reduce the support children from low-income families receive.

Ray Boshara, a senior policy advisor at the Aspen Institute and Washington University in St. Louis, said he is excited about the idea that Trump accounts will be able to receive contributions from the business, philanthropic and government sectors.

“We would like to see this idea endure and improve over time, like any great policy,” said Boshara, who co-edited the book “The Future of Wealth Creation.” “The ACA, Social Security — they start out pretty bad, but get a lot better and become more progressive and inclusive over time. And that’s how we think about the Trump accounts. It’s a down payment on a big idea that’s worth improving and there’s bipartisan interest in improving them.”

Through the Michael & The Susan Dell Foundation, the Dells, said they have given $2.9 billion since 1999, with a focus on education.

Michael Dell said they didn’t initially consider committing so much to bolstering the children’s investment accounts, but Susan Dell said over time they decided to increase the size of their commitment.

“We’re thrilled to be spearheading this project in the philanthropy sector and we’re very excited because we know more people are going to join us because really, we can’t think of a better idea or a better way to help America’s children,” she said.

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AP Writer Darlene Superville in Washington contributed to this report.

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