Michael and Susan Dell donate $6.25 billion to encourage families to claim 'Trump Accounts' | AP News
NEW YORK (AP) — Billionaires Michael and Susan Dell pledged $6.25 billion on Tuesday to provide 25 million American children under 10 with an incentive to claim the new investment accounts for children, created as part of President Donald Trump’s tax and spending legislation. This historic gift is unprecedented, 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.
The structure of this donation is also unique. 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 the Treasury for American children born between January 1, 2025, and December 31, 2028. The Dells’ gift will use the “Trump Accounts” infrastructure to give $250 to each qualified child under 10.
Michael Dell, the founder and CEO of Dell Technologies with a net worth of $148 billion, said, "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."
The "Trump Accounts" became law in July as part of the president’s signature legislation, but the Dells say the accounts will not launch until July 4, 2026, marking the 250th anniversary of U.S. independence. Susan Dell added, "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’s available to them."
Under the new law, "Trump Accounts" are available to any American child under 18 with a Social Security number. Families can fund the accounts, which must be invested in an index fund tracking the stock market. When the children turn 18, they can withdraw the funds for education, buying a home, or starting a business.
The Dells will contribute to the accounts of children 10 and younger living in ZIP codes with a median family income of $150,000 or less, who won’t receive the $1,000 seed money from the Treasury. The Dells hope this gift will encourage families to claim the accounts and deposit more money, even small amounts, to grow over time 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. Desai called the "One Big Beautiful Bill’s Trump Accounts" a revolutionary investment by the federal government into the next generation of American children, urging American businesses and philanthropists to contribute.
Brad Gerstner, a venture capitalist and founder of Invest America Charitable Foundation, praised the initiative, saying it provides a unique platform for major giving. Gerstner believes the accounts can help young people start their lives and benefit from the U.S. economy's growth through stock investments.
Despite the potential benefits, critics argue that the funds in the Trump Accounts may not immediately diminish childhood poverty. Cuts to Medicaid, food stamps, and child care, also included in the spending package, are likely to reduce support for children from low-income families. Ray Boshara, a senior policy advisor, expresses excitement about the idea's potential to improve over time, similar to other successful policies.
Through the Michael & Susan Dell Foundation, the Dells have donated $2.9 billion since 1999, with a significant focus on education. Michael Dell initially hesitated to commit such a large amount, but Susan Dell emphasized their excitement about spearheading this initiative in the philanthropy sector, believing it’s a better way to help America’s children.
AP writer Darlene Superville in Washington contributed to this report. The AP's philanthropy coverage is supported by The Conversation US with funding from Lilly Endowment Inc.
