NEW YORK (AP) — Billionaires Michael and Susan Dell pledged $6.25 billion Tuesday to give 25 million American children under 10 an incentive to claim new child investment accounts created as part of President Donald Trump’s tax-and-spend legislation.
The historic gift has few precedents, with few single charitable pledges in the past 25 years exceeding $1 billion, let alone multi-billion. Announced on GivingTuesday, the Dells believe it is the largest private commitment ever made to children in the US.
It is also unusual in that it will operate through investment accounts set up by the US Treasury Department that will be managed by private companies. Called “Trump Accounts,” the program has yet to launch, but was passed into law on July 4 as part of the president’s signature legislation.
“We believe that if every child can see a future worth saving for, this program will build something much bigger than a bank account. It will create hope, opportunity and prosperity for generations to come,” said Michael Dell, founder and CEO of Dell Technologies whose estimated net worth is $148 billion, according to Forbes.
Through their gift, Dell will deposit $250 into each qualifying child’s investment account, which they said the Treasury plans to launch on July 4, 2026. Dell said they want to mark the 250th anniversary of US independence.
“We want these kids to know that not only do their families care, but their communities, their government, their country cares about them,” said Susan Dell. “And we’re all rooting for them to have a great future, a bright future, and that’s available to them.”
Under the new law, the Treasury 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 an index fund, which tracks the stock market as a whole. But the other children’s families will have to put money into the accounts. When the children turn 18, they can withdraw the funds to put toward education, to buy a home, or to start a business.
The Dells hope their gift will encourage families to claim the accounts and put more money into them, even small amounts, so it will grow over time with the stock market. They also hope that companies and other philanthropists will donate to these accounts.
“It’s hard to deliver actual dollars on a large scale, especially to the nation’s neediest children, in a way that you trust that those dollars will combine to benefit the American economy,” Brad Gerstner, a venture capitalist who supported the legislation’s passage. “So this is a unique platform created by the government that I think can unlock major donations.”
Gerstner is also the founder of the Invest America Charitable Foundation, which supports the Treasury in launching the accounts. He said the purpose of the accounts is to give young people funds to start their lives, but also to help them benefit from the growth of the US economy by investing in stocks.
“Fundamentally, we have to get everybody on board with the positive side of the American experiment. Otherwise, it won’t last. And so, in essence, we think it can rekindle people’s faith in free market, capitalist democracy,” Gerstner said of the accounts.
About 58 percent of American households owned stocks or bonds in 2022, according to the U.S. Securities and Exchange Commission, although the richest 1 percent owned nearly half the value of stocks in the same year and the bottom 50 percent owned about 1 percent of stocks.
In 2024, about 13 percent of U.S. children and youth were living in poverty, according to the Annie E. Casey Foundation, and experts link high rates of child poverty to a lack of social supports for new parents, such as paid parental leave.
Dell will put money into the accounts of children who live in zip codes with a median family income of $150,000 or less.
While funds from Trump Accounts may help young adults whose families or employers can contribute to them over time, they will not immediately help alleviate childhood poverty. Cuts to Medicaid, food stamps and child care that were also included in the spending package are likely to reduce support for children in low-income families.
Ray Boshara, senior policy advisor at 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 government sectors.
“We’d like to see this idea continue and improve over time, just like any important policy,” said Boshara, who co-edited the book “The Future of Wealth Building.” “The ACA, Social Security — they started out pretty flawed, but they’re getting much better and more progressive and more inclusive over time. And that’s how we feel about the Trump Accounts. It’s an advance for a big idea that’s worth improving, and there’s a bipartisan interest in improving them.”
Through the Michael & Susan Dell Foundation, Dell reported giving away $2.9 billion since 1999, with a heavy emphasis on education.
Michael Dell said they originally didn’t envision committing so much to growing the children’s investment accounts, but Susan Dell said over time they decided to increase their commitment.
“We’re excited to be at the forefront of this in the philanthropy sector, and we’re so excited because we know more people are going to get on board, because really, we can’t think of a better idea and a better way to help America’s children,” she said.
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