Billionaires Michael and Susan Dell pledged $6.25 billion Tuesday to provide incentives to 25 million American children under the age of 10 to claim new investment accounts for children created as part of Donald Trump’s tax and spending law.
There is no precedent for historic gifts, with few single charitable commitments in the last 25 years exceeding $1 billion, with fewer in the billions. The giving, announced Tuesday, is what the Dales believe is the largest single private commitment ever made to American children.
It is also unusual in that it will operate through investment accounts established by the US Treasury Department that will be managed by private companies. The program, called “Trump Accounts,” has not yet launched but was passed into law on July 4 as part of legislation signed by the president.
Michael Dell, founder and CEO of Dell Technologies, who has an estimated net worth of $148 billion, according to Forbes, said, “We believe that if every child can see a future worth saving, this program will create something much bigger than an account. It will create hope and opportunity and prosperity for generations to come.”
Through his gift, Dales will deposit $250 into the investment account of each eligible child, he said Treasury plans to launch on July 4, 2026. Dell said they wanted to celebrate the 250th anniversary of American independence.
Under the new law, the Treasury will deposit $1,000 into the accounts of children born between January 1, 2025 and December 31, 2028, and the funds must be invested in an index fund that tracks the overall stock market.
But it will be up to the families of other children to put money into the accounts. When children turn 18, they can withdraw funds for their education, buying a house or starting a business.
The Dales hope their gift will encourage families to claim the accounts and deposit more money into it, even in small amounts, so it will grow over time along with the stock market. They also hope that companies and other philanthropists will donate to these accounts.
According to the Annie E. Casey Foundation, in 2024, about 13% of children and youth in the US will live in poverty, and experts link high child poverty rates to a lack of social supports such as paid parental leave for new parents.
Dell will put money into the accounts of children who live in ZIP codes with a median family income of $150,000 or less.
Although the funds in Trump accounts could help young adults whose families or employers could contribute to them over time, they would not immediately help reduce childhood poverty. Cuts to Medicaid, food stamps and child care, which were also included in the spending package, are likely to reduce support for children in low-income families.
Michael Dell said he had not initially envisioned such a commitment to promoting child investment accounts, but Susan Dell said that over time, they decided to increase the size of their commitment.
“We’re thrilled to lead this in the field of philanthropy and are very excited because we know more people are going to get involved because really, we can’t think of a better idea and a better way to help America’s children,” he said.
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