NEW YORK (AP) — Billionaires Michael and Susan Dell pledged $6.25 billion on Tuesday to provide incentives for 25 million U.S. children under the age of 10 to sign up for new children’s investment accounts as part of President Donald Trump’s tax and spending legislation.
There is little precedent for this historic donation; over the past 25 years, few single philanthropic commitments have exceeded $1 billion, let alone billions. The Dells announced the news on Giving Tuesday, which they believe is the largest private commitment ever made to America’s children.
What’s unusual about it is that it will operate through an investment account set up by the U.S. Treasury Department, which will be managed by a private company. The program, known as “Trump Accounts,” has not yet been launched but was passed into law on July 4 as part of legislation signed by the president.
“We believe that if every child can see a future worth saving for, this plan will create something greater than just an account. It will bring 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.
With their gift, the Dells will deposit $250 into each qualifying child’s investment account, which they said the Treasury Department plans to launch on July 4, 2026. Dell said they wanted to commemorate the 250th anniversary of American independence.
“We want these kids to know that not only do their families care about them, but their community cares about them, their government, their country cares about them,” Susan Dyer said. “We’re all rooting for them to have a great future, a bright future, that’s within their reach.”
Under the new law, the Treasury Department will deposit $1,000 into the accounts of children born between January 1, 2025 and December 31, 2028, and the funds must be invested in index funds that track the overall stock market. But depositing the money into the account will be at the discretion of the other children’s families. When children turn 18, they can withdraw funds for education, buying a house or starting a business.
The Dells hope their gift will encourage families to claim the accounts and deposit more money, even small amounts, so that over time the money will grow as the stock market rises. They also want businesses and other philanthropists to donate to the accounts.
“It’s very difficult to deliver effective dollars at scale, especially to America’s most needy kids, and you have confidence that those dollars will be coupled with the growth of the U.S. economy,” 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 the Investing in America Philanthropic Foundation, which supports the Treasury Department in launching these accounts. The goal of the accounts, he said, is to provide young people with capital to jump-start their lives while helping them benefit from the growth of the U.S. economy by investing in stocks.
“Fundamentally, we need to engage everyone in the benefits of the American experiment. Otherwise, it won’t last. So, essentially, we think it can rekindle faith in free markets and capitalist democracy,” Gerstner said of the accounts.
According to the Securities and Exchange Commission, about 58% of U.S. households held stocks or bonds in 2022, although the richest 1% owned nearly half of the value of stocks that same year, while the richest 50% owned about 1%.
About 13% of children and young adults in the United States were living in poverty in 2024, according to the Annie E. Casey Foundation, and experts have linked high rates of child poverty to a lack of social support for new parents, such as paid parental leave.
The Dells will deposit money into the accounts of children who live in zip codes where the median household income is $150,000 or less.
While the funds in Trump’s account may help young people to whom families or employers can contribute over the long term, they won’t immediately help reduce child poverty. The spending plan also includes cuts to Medicaid, food stamps and child care, which could reduce support for children from low-income families.
Ray Boshara, a senior policy adviser at the Aspen Institute and Washington University in St. Louis, said he was excited by the idea that the Trump account would be able to receive donations from business, philanthropic and government sectors.
“We want to see this idea continue and get better over time, like any major policy,” said Boshara, co-editor of the book “The Future of Wealth Creation.” “The Affordable Care Act, Social Security — they were pretty flawed at the beginning, but they got better and more progressive and more inclusive over time. That’s how we feel about Trump’s account. It’s a down payment on a great idea that’s worth improving, and there’s bipartisan interest in improving them.”
The Dell family has reportedly donated $2.9 billion through the Michael and Susan Dell Foundation since 1999, with a focus on education.
Michael Dell said they didn’t initially expect to commit so much money to growing the Children’s Investing Account, but Susan Dell said they decided to increase the size of their commitment over time.
“We’re excited to be leading the way in philanthropy and excited because we know more people will join in because, literally, we can’t think of better ideas and ways to help children in America,” she said.
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