NEW YORK – In a landmark act of generosity, billionaires Michael and Susan Dell have committed an astounding $6.25 billion to benefit 25 million American children under the age of 10. This significant donation is intended to motivate these young individuals to access new investment accounts introduced under President Donald Trump’s recent tax and spending legislation.
Unveiled on GivingTuesday, this contribution is unprecedented. In the past quarter-century, charitable donations of this magnitude are rare, with few exceeding even $1 billion. The Dells’ initiative is poised as the largest single private donation aimed at supporting children in the United States.
This initiative is distinctive as it will be facilitated through investment accounts established by the U.S. Department of the Treasury, to be managed by private enterprises. These accounts, referred to as “Trump Accounts,” were legislated into existence on July 4 and are a key component of the President’s legislative agenda, though they are yet to be operational.
Michael Dell, the founder and CEO of Dell Technologies, whose net worth Forbes estimates at $148 billion, expressed the broader vision of this initiative: “We believe that if every child can envision a future worth saving for, this program will create more than just an account. It will foster hope, opportunity, and prosperity for future generations.”
The Dells’ financial commitment translates to a $250 deposit into each eligible child’s account, with plans for the Treasury to launch these accounts on July 4, 2026—a symbolic nod to the 250th anniversary of American independence.
Susan Dell emphasized the communal aspect of their gift, stating, “We want these kids to know that not only do their families care, but their communities, government, and country are also invested in them. We are all cheering for them to have a wonderful and bright future, one that is within their reach.”
Under the new law, the Treasury will deposit $1,000 into the accounts of children born between Jan. 1, 2025 and Dec. 31, 2028 and the funds must be invested in an index fund, which tracks the overall stock market. But it will be up to the families of other children to put money into the accounts. When the children turn 18, they can withdraw the funds to put toward their education, to buy a home or to start a business.
The Dells hope their gift will encourage families to claim the accounts and deposit more money into it, even small amounts, so it will grow over time along with the stock market. They also hope companies and other philanthropists will donate to these accounts.
“It’s hard to give effective dollars away at scale, particularly to the country’s neediest kids in a way that you have confidence that those dollars are going to compound with the upside of the U.S. economy,” Brad Gerstner, a venture capitalist, who advocated for the passage of this legislation. “And so, this is a unique platform that’s being created by the government that I think can unlock major giving.”
Gerstner is also the founder of Invest America Charitable Foundation, which is supporting the Treasury in launching the accounts. He said the goal of the accounts is to give young people funds to jump start their lives but also to help them benefit from the growth of the U.S. economy through investing in stocks.
“Fundamentally, we need to include everybody in the upside of the American experiment. Otherwise, it won’t last. And so, at its core, we think it can re-energize people’s belief in free market, capitalist democracy,”″ Gerstner said of the accounts.
About 58% of U.S. households held stocks or bonds in 2022, according to the U.S. Securities and Exchange Commission, though the wealthiest 1% owned almost half the value of stocks in that same year and the bottom 50% owned about 1% of stocks.
In 2024, about 13% of children and young people in the U.S. lived in poverty, according to the Annie E. Casey Foundation, and experts link the high child poverty rates to the lack of social supports for new parents, like paid parental leave.
The Dells will put money into the accounts of children who live in ZIP codes with a median family income of $150,000 or less.
While the funds in the Trump Accounts may help young adults whose families or employers can contribute to them over time, they won’t immediately help to diminish childhood 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, senior policy advisor with both the Aspen Institute and Washington University in St. Louis, said he is excited about the idea that the Trump Accounts will be able to receive contributions from the business, philanthropic and governmental sectors.
“We would like to see this idea continue and get better over time, just like any big policy,’ said Boshara, who co-edited the book “The Future of Building Wealth.” “The ACA, Social Security – they start off fairly flawed, but get much better and more progressive and inclusive over time. And that’s how we think about Trump Accounts. It’s a down payment on a big idea that deserves to be improved and there’s bipartisan interest in improving them.”
Through the Michael & Susan Dell Foundation, the Dell’s have reported giving $2.9 billion since 1999, with a large focus on education.
Michael Dell said they had not initially envisioned committing so much to boost the child investment accounts, but Susan Dell said over time, they decided to increase the size of their commitment.
“We’re thrilled to be spearheading this in the philanthropy sector and are so excited because we know that more people are going to jump on board because really, we can’t think of a better idea and better way to help America’s children,” she said.
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