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

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

The couple’s donation will be the largest ever for American children, according to Invest America, a nonprofit advocacy group partnered with the Dells.

“It’s designed to help families feel supported from the start and encourage them to continue saving as their children grow up,” said Michael Dell, founder and CEO of Dell. Dell Technologiestold CNBC in an interview. “We know that when kids have these types of accounts, they are less likely to graduate from high school, college, buy a home, start a business, and go to jail.”

The Dales’ commitment runs parallel to a new federal government program that allows parents with Social Security numbers to open tax-advantaged investment accounts for children under 18. Under the federal program, U.S. citizens born from the beginning of 2025 through 2028 will receive a $1,000 federal grant to add those so-called Trump accounts. Parents will be able to open and contribute to these accounts beginning July 4, 2026, with IRS guidance not yet released.

Dales has committed to putting $250 into Trump accounts for children age 10 or younger born before Jan. 1, 2025. The pledged funds will cover 25 million children ages 10 and younger in ZIP codes with a median income of $150,000 or less, according to Invest America.

“We want to help kids who weren’t part of the government program,” Dale said.

Dale said he first became interested in starting investment accounts for kids after hearing the idea from hedge fund manager Brad Gerstner around 2021. Gerstner, CEO of Altimeter Capital, later founded Invest America, which advocated for the program to be included in the One Big Beautiful Bill Act.

Trump accounts can only be used to invest in low-cost diversified funds that track U.S. stock indexes. Gerstner said these accounts and grants give American children the opportunity to benefit from the growth of the US stock market at an early age.

Gerstner said combining the accounts into one larger amount would require more than the $250 from Dell or the $1,000 federal grant. However, Gerstner said the initial funding encourages parents to add money of their own.

He said the law makes it easier for corporations and philanthropists to make large-scale charitable contributions. Dell Technologies has promised to match a $1,000 grant deposited by the U.S. Treasury into the accounts of employees who have new children.

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

“It would have been impractical, or perhaps even impossible, to impact so many kids in this way without a program like this,” Dale said.

There are some examples of the Dales’ pledge. The foundation of shoe billionaire Harold Alfond, who died in 2007, issues a $500 educational grant to every child born in Maine.

While Trump accounts are easier to seed, they lack some of the tax benefits of other accounts like 529 accounts or Roth IRAs. Withdrawals are not allowed until the child turns 18, at which point the assets are rolled over to the IRA and withdrawals are taxed.

Dell said he has spoken to other major philanthropists and is optimistic that others will also deposit funds into these investment accounts.

“We hope every child sees a future they can save for,” he said. “You think about the compounding impact a program like this could have on millions of kids over 10, 20, 30 years. That’s what excites us.”