Michael Dell, CEO of Dell Technologies, and his wife, Susan Dell, are donating $6.25 billion to start investment accounts for at least 25 million American children. They first offered the donation to former President Joe Biden, but he did not respond.
The money will fund the so-called “Trump Accounts,” a new federal program launched by the “One Big Beautiful Bill Act.” The program will start in 2026.
Michael Dell, the world’s 11th-richest person with a net worth of $148 billion, expressed his excitement about giving this gift to American children.
He said: “We feel super excited to be able to make a difference in millions of children’s futures and create opportunity, hope, and prosperity for them.”
How the Funding Will Work
“Trump Accounts” are tax-deferred investment accounts designed to help children save money. Funding for these accounts comes from two main sources:
- The Treasury Department will put $1,000 into the account of every eligible U.S. citizen child born between January 1, 2025, and December 31, 2028.
- The Dells’ donation is for children aged 10 and under who were born before 2025. Their $6.25 billion gift will provide $250 deposits for at least 25 million children. The donation focuses on zip codes with median incomes below $150,000 and aims to reach children in 75% of U.S. zip codes.
Michael Dell highlighted how early investment can have a big impact over time: “If you think about the power of compounding and what these accounts are likely to become over 10, 20, 30 years, that’s super significant.”
Looking Ahead to the Future
Families can start signing up for the accounts on July 4, 2026. Each account allows private contributions of up to $5,000 per year, and employers can add up to $2,500 of that amount.
The money will be invested in mutual or index funds and cannot be withdrawn until the child turns 18. When withdrawn, the funds will be treated like a traditional IRA. The money can be used for things like furthering their education, purchasing a first home, or starting a business.
Susan Dell spoke about why this gift is so important: “Investing in children and their future is really investing in all of our futures. Children are the future. So we couldn’t be more excited about this program.”
Concerns About Complexity
While many people are excited, some critics say that adding another special savings account could be confusing. The Tax Foundation notes that families already have many options to consider: “For parents looking to set up an account for their children’s education, a 529 account offers more flexibility and tax benefits. If the federal government really wanted to make saving more accessible for taxpayers, it would replace the complicated mess of savings accounts currently available with universal savings accounts.”
Michael Dell said the project moved forward after he spoke with President Donald Trump earlier this year. He had first talked with the Biden administration, but nothing came of it.
Dell explained: “I had an opportunity to explain it to the president earlier this year.”
He believes others will also support the cause: “We’ve also talked with a number of other philanthropists, and we feel confident there’ll be other significant gifts that get announced,” he said.
Susan Dell said the main goal is to inspire hope: “What we really hope is that children will see that there’s a future worth saving for, and if every child sees that there is a future worth saving for, then we’ll have been a part of helping build that hope and opportunity and prosperity for generations to come.”
Some are wondering whether a move like that could have helped Biden politically, regardless of the policy’s value.
