NEW YORK — Billionaires Michael and Susan Dell pledged $6.25 billion Tuesday to provide 25 million American children under 10 an incentive to claim the new investment accounts for children created as part of President Donald Trump’s tax and spending legislation.
The historic gift has little precedent, with few single charitable commitments in the past 25 years exceeding $1 billion, much less multiple billions. Announced on GivingTuesday, the Dells believe it’s the largest single private commitment made to U.S. children.
Its structure is also unusual. Essentially, it builds on the “ Trump Accounts ” program, where the U.S. Department of the Treasury will deposit $1,000 into investment accounts set up by Treasury for American children born between Jan. 1, 2025 and Dec. 31, 2028. The Dells’ gift will use the “Trump Accounts” infrastructure to give $250 to each qualified child under 10.
“We believe that if every child can see a future worth saving for, this program will build something far greater than an account. It will build hope and opportunity and prosperity for generations to come,” said Michael Dell, the founder and CEO of Dell Technologies whose estimated net worth is $148 billion, according to Forbes.
Though the “Trump Accounts” became law as part of the president’s signature legislation in July, the Dells say the accounts will not launch until July 4, 2026. Michael Dell said they wanted to mark the 250th anniversary of U.S. independence.
“We want these kids to know that not only do their families care, but their communities care, their government, their country cares about them,” said Susan Dell. “And we’re all rooting for them to have a wonderful future, a bright future, and that that’s available 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 the accounts, which must be invested in an index fund that tracks the overall stock market. 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 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 won’t get the $1,000 seed money from the Treasury. 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.
President Trump plans to celebrate the commitment later on Tuesday and a White House spokesperson Kush Desai said the Dell’s gift will be the first of many new pledges to fund the accounts.
“The One Big Beautiful Bill’s Trump Accounts are a revolutionary investment by the federal government into the next generation of American children,” Desai said. “It’s also President Trump’s call to action for American businesses and philanthropists to do their part, too.”
“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.
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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AP writer Darlene Superville in Washington contributed to this report.
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