Michael Dell and Susan Dell have announced a historic $6.25 billion philanthropic commitment to support investment accounts for at least 25 million children across the United States. The funds will help launch a new savings initiative known as “Trump Accounts,” scheduled to begin in 2026.
The accounts were created under Donald Trump’s One Big Beautiful Bill Act and are designed to give American children a financial head start through long-term investing.
Under the federal program, the U.S. Department of the Treasury will automatically deposit $1,000 into the investment account of every eligible U.S. citizen child born between January 1, 2025 and December 31, 2028.
The Dell family’s donation fills an important gap by funding $250 starter deposits for children aged 10 and younger who were born before 2025, covering those who would otherwise miss the government contribution. Their gift alone is expected to benefit more than 25 million children, making it one of the largest private investments in U.S. youth in history, according to Invest America.
Why the Dells Made This Historic Donation
Michael Dell, the chief executive of Dell Technologies, said the long-term power of investing inspired the record-breaking pledge.
“Compounding over decades can completely transform a child’s future,” Dell said. “This is an opportunity to give millions of children a real financial foundation.”
Susan Dell added that the decision was rooted in their lifelong focus on children’s welfare. “When you invest in children, you are investing in the future of the entire country,” she said.
The donation more than doubles the couple’s previous lifetime giving, which stood at $2.9 billion, according to the Michael & Susan Dell Foundation.
What Are ‘Trump Accounts’ and How Do They Work?
“Trump Accounts” are tax-deferred investment accounts created specifically for children. Parents or legal guardians will be able to open accounts using a new IRS form beginning in 2026, with additional online enrollment options launching mid-year.
Key features include:
- Up to $5,000 per year in private contributions
- Employers may add up to $2,500 annually
- Funds will be invested in mutual funds or index funds tied to the S&P 500
- Accounts remain locked until the child turns 18
Once unlocked, the funds will be treated similarly to a traditional individual retirement account (IRA). Withdrawals can be used for:
- College or vocational education
- A first-home down payment
- Starting a business
All withdrawals will follow standard IRA tax and eligibility rules.
How the Dell Funding Will Be Distributed
The Treasury Department will manage the disbursement of Dell-funded contributions, prioritizing children in postal-code areas where median household income is under $150,000. The program is projected to reach families across 75% of U.S. zip codes. If surplus funds remain, children older than 10 may also become eligible.
Experts Weigh In on Savings Alternatives
While the program offers “free money” for families, some financial experts have raised questions about its complexity. The Tax Foundation noted that existing savings tools like 529 education plans may offer greater tax advantages and flexibility.
