Michael and Susan Dell have committed a groundbreaking philanthropic gesture by pledging $250 to the accounts of 250 million children, marking one of the largest charitable donations ever directed towards Americans.

This generous contribution will significantly expand the reach of investment seed money, known as ‘Trump Accounts,’ first introduced by the president in July.

Under this initiative, the federal government will provide $1,000 to every child born between January 1, 2025, and December 31, 2028. The Dells’ contribution further extends this opportunity to children up to 10 years old, specifically those residing in ZIP codes where the median household income is below $150,000.

The monumental $6.25 billion donation is almost unprecedented, as few charitable commitments over the past quarter-century have exceeded $1 billion, let alone several billion.

Revealed on GivingTuesday, the Dells regard their donation as the most substantial private commitment ever made to benefit American children.

‘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 Dell, the founder and CEO of Dell Technologies whose estimated net worth is $148 billion, making him the tenth richest man in the world.

It is also unusual in that it will operate through investment accounts set up by the Treasury Department that will be managed by private companies.

Dell said they wanted to mark the 250th anniversary of US independence and the Treasury plans to launch the accounts on July 4.

Michael and Susan Dell, pose for photographs November 26 in New York

Donald Trump holding a baby at a campaign rally in Pensacola, Florida, on November 2, 2016

Susan Dell said: ‘We want these kids to know that not only do their families care, but their communities care, their government, their country cares about them. 

‘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, the Treasury will deposit $1,000 into the accounts of children and the funds must be invested in an index fund, which tracks the overall stock market.

Families of older children can open and contribute to Trump Accounts for their kids without the federal start-up deposit. 

Parents, guardians, family members, and employers can contribute to these accounts up to $5,000 per year per child. Employer contributions are capped at $2,500 annually included within that limit.

Contributions can be made until the end of the year the child turns 18. The accounts grow tax-deferred, similar to traditional IRAs, and the funds can be used later for education, buying a first home, or starting a business. 

Children gain full control of the accounts when they turn 18.

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 US 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 percent of US households held stocks or bonds in 2022, according to the U.S. Securities and Exchange Commission, though the wealthiest 1 percent owned almost half the value of stocks in that same year and the bottom 50 percent owned about 1 percent of stocks .

In 2024, about 13 percent of children and young people in the US 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.

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.

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.