Michael Dell pledges $6.25 billion to fund Trump Accounts for 25 million kids

Michael and Susan Dell announced Tuesday that they have set aside $6.25 billion to fund the investment accounts of nearly 25 million American children.

The couple’s donation would be the largest ever allocated to American children, according to Invest America, a nonprofit advocacy group that partners with the Dells.

“It is designed to help families feel supported from the start and encourage them to save as their children grow,” said founder and CEO Michael Dell. Dell Technologieshe told CNBC in an interview. “We know that when kids have these types of accounts, they are much more likely to graduate from high school, college, buy a home, start a business, and they are less likely to be incarcerated.”

Dells’ commitment goes hand in hand with a new federal government program that allows parents to open tax-advantaged investment accounts for children under 18 with a Social Security number. Under the federal program, U.S. citizens born between the beginning of 2025 and 2028 will receive a $1,000 federal grant to set up so-called Trump accounts. With IRS guidance yet to be released, parents will be able to open and contribute to these accounts starting July 4, 2026.

The Dells have pledged to seed Trump accounts with $250 for children 10 and under born before January 1, 2025. According to Invest America, the committed funds will cover 25 million children ages 10 and under in zip codes with median incomes of $150,000 or less.

“We want to help kids who are not part of the government program,” Dell said.

Dell said he first became interested in the idea of ​​creating investment accounts for children around 2021 after hearing about the idea from hedge fund manager Brad Gerstner. Gerstner, CEO of Altimeter Capital, later founded Invest America, which advocated for the program’s inclusion in the One Big Beautiful Bill.

Trump Accounts can only be used to invest in low-cost, diversified funds that track the U.S. stock index. These accounts and donations give American children a chance to benefit from the growth of the U.S. stock market at an early age, Gerstner said.

Gerstner said it would take a federal grant of more than $250 or $1,000 from the Dells for the accounts to reach a significant amount. But seed money encourages parents to add their own funds, Gerstner said.

He added that the legislation makes it much easier for companies and philanthropists to make charitable contributions on a large scale. Dell Technologies has pledged to match a $1,000 grant from the U.S. Treasury deposited into accounts for employees’ new children.

Parents only need to open a Trump account to automatically receive a grant from the Michael & Susan Dell Foundation.

“Without a program like this, it would be impractical, perhaps even impossible, to impact so many kids in this way,” Dell said.

There are several examples of Dells’ commitment. The foundation of shoe billionaire Harold Alfond, who died in 2007, donates $500 to every child born in Maine.

While Trump accounts are easy to seed, they lack some of the tax advantages of other accounts such as 529 accounts or Roth IRAs. Withdrawals are not allowed until the child turns 18; At this point, assets are transferred to the IRA and withdrawals are taxed.

Dell said he’s spoken to other major philanthropists and is optimistic others will donate funds to these investment accounts, too.

“What we hope is that every child sees a future worth saving for themselves,” he said. “You think about the compounding impact of a program like this on millions of kids over 10, 20, 30 years. That’s what excites us.”