Michael and Susan Dell donate billions for Trump accounts
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In an unprecedented charitable donation, Michael and Susan Dell will give 25 million American children money to open an investment account for their future.
The $6.25 billion ($9.5 billion) gift builds on the Invest America initiative (better known as “Trump accounts”) created under President Donald Trump’s One Big Beautiful Bill Act earlier this year. Under the program, the government will automatically create an account of $1,000 for every child born between 2025 and 2028.
Dells’ gift will go to the Treasury Department and fund the accounts of 25 million children ages 10 and under who are not currently eligible for government money. Dell, 60, said it is initially targeting zip codes with median household incomes below $150,000 and expects to reach 80 percent of U.S. children in that age range.
“We believe that if every child can see a future worth saving for, we will create something much bigger than an account,” Dell said in an interview. “We will build hope, opportunity and prosperity for future generations.”
Dell, who is the 11th richest person in the world with a fortune of $148 billion, according to the Bloomberg Billionaires Index, has become the clear champion of Trump accounts.
In June, the founder and chief executive of Dell Technologies participated in an “Invest in America” roundtable with other CEOs, including Goldman Sachs’ David Solomon and Uber’s Dara Khosrowshahi.
At the event, Trump touted his investment accounts and credited Dell with bringing him the idea. Dell announced that its company will match the government’s $1,000 contribution for employees’ children.
Trump applauded the announcement in a post on Truth Social on Tuesday. “TWO GREAT PEOPLE. I LOVE DELL!!!” he wrote.
Dell Technologies shares rose 4 percent in morning trading in New York.
‘Every child’
Under the government initiative, which will begin on July 4, 2026, every parent will be able to open an account for their child and contribute up to $5,000 per year. Employers can donate up to $2,500 annually without affecting workers’ taxable income. Additional gifts from philanthropists such as Dell or governments are not included in the limit.
The money will be invested in various, low-cost index funds and will not be accessed until the child turns 18; At this point it can be withdrawn for expenses like college tuition, a house deposit or startup costs. Assets in Trump accounts are allowed to grow tax-free, but recipients must pay taxes on their earnings when the money is withdrawn.
“For us, this is really an opportunity to give every child the opportunity to have a small start in building their future,” Dell said.
Silicon Valley venture capitalist Brad Gerstner founded the Invest America nonprofit in 2023 with the idea of distributing money to American children to reduce the wealth gap and increase financial literacy.
“The wealth gap has widened and we haven’t come up with anything concrete to deal with it,” Gerstner, the founder of Altimeter Capital, said in an interview. “This will dramatically change the fate of people left out and left behind.”
Gerstner said he hopes the accounts will open up a new way for government, companies and individuals like Dell to invest in children’s futures.
“This isn’t just about the private account of the child at birth receiving $1,000 from the federal government,” Gerstner said. “This becomes a platform where every company in America can contribute to the children of their employees, and where mothers, fathers, churches and synagogues can contribute to the accounts of their families’ children or children in their communities.”
Dell’s dream
Dell knows the transformative power of $1,000.
On his LinkedIn page, his profile simply reads: “I started Dell in 1984 in my freshman dorm room at the University of Texas with $1,000.” His eponymous company has grown into a computer giant with a market value of approximately $90 billion.
Dell and his wife own about 40 percent of Dell Technologies, according to Bloomberg’s wealth index. It also gained a significant stake with Broadcom’s acquisition of VMware, which was spun off from Dell Technologies in 2023. Broadcom’s shares have risen nearly 300 percent since then, fueled by spending on artificial intelligence.
The couple’s contributions to their foundation rose sharply from an average of $57 million annually between 2020 and 2022 to nearly $3.6 billion in 2023, including $1.7 billion in Broadcom stock. Donations in 2024 totaled $1.45 billion.
The Michael & Susan Dell Foundation has donated more than $2.9 billion to date, according to its website. Children have been the main focus of donations, including scholarships, expansion of private schools and Dell Children’s Medical Center in Austin.
Bloomberg
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