Austin billionaires Michael and Susan Dell pledged $6.25 billion Tuesday, December 2, to provide 25 million American children under 10 an incentive to claim the new investment accounts for children created as part of President Donald Trump’s tax and spending legislation.
The historic gift has little precedent, with few single charitable commitments in the past 25 years exceeding $1 billion, much less multiple billions. Announcing it on GivingTuesday, the Dells say they believe it’s the largest single private commitment made to U.S. children.
Its structure is also unusual. Essentially, 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 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.
“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,” said Michael Dell, the founder and CEO of Round Rock-based Dell Technologies whose estimated net worth is $148 billion, according to Forbes.
Though the “Trump Accounts” became law as part of the president’s signature legislation in July, the Dells say the accounts will not launch until July 4, 2026. Michael Dell said they wanted to mark the 250th anniversary of U.S. independence.
“We want these kids to know that not only do their families care, but their communities care, their government, their country cares about them,” said Susan Dell. “And we’re all rooting for them to have a wonderful future, a bright future, and that that’s available to them.”
Under the new law, “Trump Accounts” are available to any American child under 18 with a Social Security number and their families can fund the accounts, which must be invested in an index fund that tracks the overall stock market. When the children turn 18, they can withdraw the funds to put toward their education, to buy a home or to start a business.
The Dells will put money into the accounts of children 10 and younger who live in ZIP codes with a median family income of $150,000 or less and who won’t get the $1,000 seed money from the Treasury. The Dells say they hope their gift will encourage families to claim the accounts and deposit more money into it, even small amounts, so it will grow over time along with the stock market.
President Trump plans to celebrate the commitment later on Tuesday.
About 58 percent of U.S. households held stocks or bonds in 2022, according to the U.S. Securities and Exchange Commission, though the wealthiest 1 percent owned almost half the value of stocks in that same year and the bottom 50 percent owned about 1 percent of stocks.
In 2024, about 13 percent of children and young people in the U.S. lived in poverty, according to the Annie E. Casey Foundation, and experts link the high child poverty rates to the lack of social supports for new parents, like paid parental leave.
While the funds in the Trump Accounts may help young adults whose families or employers can contribute to them over time, they won’t immediately help to diminish childhood poverty. Cuts to Medicaid, food stamps and child care that were also included in the spending package are likely to reduce the support children from low-income families receive.
Through the Michael & Susan Dell Foundation, the Dells have reported giving $2.9 billion since 1999, with a large focus on education.
Michael Dell said they had not initially envisioned committing so much to boost the child investment accounts, but Susan Dell said over time, they decided to increase the size of their commitment.
“We’re thrilled to be spearheading this in the philanthropy sector and are so excited because we know that more people are going to jump on board because really, we can’t think of a better idea and better way to help America’s children,” she said.