In a groundbreaking philanthropic initiative announced on Giving Tuesday, Michael and Susan Dell have pledged $6.25 billion to provide investment accounts for approximately 25 million American children.
This historic donation represents the largest single private commitment ever made to U.S. children and more than doubles the couple’s entire lifetime giving to date.
What Are Trump Accounts?
Trump Accounts are tax-advantaged investment vehicles that can only be used to invest in low-cost diversified funds tracking a U.S. stock index.
Created through President Donald Trump’s “One Big Beautiful Bill Act,” these accounts were formally established as part of the Invest America initiative, which aims to give every American child a financial head start.
Under the federal program, the Department of Treasury will seed accounts with $1,000 per child for every baby born in the U.S. between January 1, 2025, and January 1, 2029, provided both the child and parents have Social Security numbers.
The Dell Family’s Historic Contribution
Michael Dell, founder and CEO of Dell Technologies with an estimated net worth of $148 billion, and his wife Susan are addressing a critical gap in the federal program.
Their donation will provide $250 to children ages 10 and younger who were born before January 1, 2025, and therefore don’t qualify for the government’s $1,000 contribution.
The initiative is expected to reach nearly 80% of children under age 10 across 75% of U.S. zip codes, specifically targeting areas with median household incomes of $150,000 or less.
If funds remain available after initial sign-ups, children older than 10 may also benefit from the program.
How the Investment Accounts Work
These accounts function as long-term wealth-building tools with specific guidelines designed to maximize growth:
Key Features:
- Accounts can receive contributions up to $5,000 annually from parents, family members, and other supporters
- Funds must be invested in index funds or ETFs that track the S&P 500 or other American stock indices
- Money remains locked until the beneficiary turns 18
- At age 18, account holders can use funds for education, job training, homeownership, or convert to a traditional IRA for continued tax-advantaged growth
Potential Growth: According to financial planning experts, if families maximize annual contributions at $5,000 with a conservative 6% growth rate, accounts could accumulate approximately $191,000 by the time a child reaches age 18.
Inspiration Behind the Initiative
Michael Dell first learned about the concept in 2021 from hedge fund manager Brad Gerstner, CEO of Altimeter Capital, who later founded the Invest America Charitable Foundation to advocate for the program’s passage.
The Dell family was immediately drawn to the idea’s potential to create lasting impact.
“We’ve seen what happens when a child gets even a small financial head start – their world expands,” Michael Dell explained in a video announcement.
Research consistently shows that children with savings accounts are more likely to graduate from high school and college, start businesses, and less likely to face incarceration.
The couple deliberately chose $250 as the contribution amount to commemorate America’s 250th birthday, with account sign-ups scheduled to begin on July 4, 2026.
Corporate Participation and Future Implications
Dell Technologies has also committed to matching the $1,000 federal grants for newborn children of company employees, demonstrating corporate engagement with the program.
President Trump celebrated the announcement, suggesting this would be the first of many similar commitments from American businesses and philanthropists.
The program creates what advocates describe as a unique platform enabling families, communities, corporations, and charitable foundations to contribute collectively toward children’s financial futures.
Brad Gerstner noted the challenge of giving effectively at scale, particularly to the neediest children, making this government-facilitated platform valuable for unlocking major philanthropy.
Precedent and Scale
Few philanthropic commitments in the past 25 years have exceeded $1 billion, making the Dell’s $6.25 billion pledge extraordinary by any measure. The Dells have donated $2.9 billion to date through their foundation, making this pledge more than double their entire previous giving.
The closest precedent is Harold Alfond’s foundation in Maine, which provides $500 educational grants for every child born in the state. However, the scale and scope of the Dell initiative far surpasses existing programs.
Broader Context and Considerations
While the Trump Accounts program has garnered significant support from business leaders and philanthropists, policy experts note that the broader spending bill included cuts to Medicaid, food stamps, and childcare programs that may reduce support for low-income families.
Advocates view the accounts as a starting point that can be improved over time, similar to how Social Security and the Affordable Care Act evolved after their initial implementation.
Ray Boshara of the Aspen Institute and Washington University in St. Louis expressed enthusiasm about the program’s ability to receive contributions from multiple sectors, calling it a down payment on a promising idea with bipartisan interest in refinement.
What This Means for American Families
For millions of American families, the Dell donation represents a tangible investment in their children’s futures. The combination of federal contributions, private philanthropy, and family savings creates a powerful financial foundation that harnesses the growth of U.S. markets over time.
As Michael and Susan Dell stated in their announcement: “From our years of experience in supporting education, health, and financial stability programs, we know that this program will give young Americans more than a savings account.
It will give them momentum. It will give them confidence and opportunity.”
With account registration opening in July 2026, eligible families will need to activate their accounts to begin benefiting from this unprecedented philanthropic initiative.
The program represents not just a financial investment, but a statement that communities, government, and private citizens are collectively invested in the next generation’s success.
Account sign-ups are expected to begin July 4, 2026. Eligible families should monitor the Invest America website for registration details and requirements.
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