US News: Billionaire philanthropists Michael and Susan Dell revealed on Tuesday a monumental commitment of $6.25 billion to establish investment accounts for approximately 25 million children in the United States, marking what experts call the largest donation ever directed toward supporting American youth. This initiative, announced in partnership with the nonprofit advocacy organization Invest America, seeks to empower families by providing an early financial foundation that promotes long-term saving and economic mobility.
In an exclusive interview, Michael Dell, the founder and chief executive officer of Dell Technologies, emphasized the transformative potential of these accounts. He noted that children with access to such resources are significantly more likely to complete high school and college, purchase homes, launch businesses, and avoid incarceration later in life. “This is about giving families a sense of support from day one and motivating them to continue building on that foundation as their kids grow,” Dell explained.
The Dells’ generous pledge aligns closely with a newly enacted federal program that enables parents to create tax-advantaged investment accounts for any child under the age of 18 who possesses a Social Security number. Under this initiative, which stems from President Donald Trump’s recent tax and spending legislation, children born between January 1, 2025, and December 31, 2028, will receive an initial $1,000 grant from the government to seed their accounts, commonly referred to as Trump accounts. Parents can begin opening and contributing to these accounts starting July 4, 2026, with detailed guidance from the Internal Revenue Service expected in the coming months.
Focusing on children who fall outside the federal grant’s birth-year eligibility, the Dells will provide $250 to seed accounts for kids aged 10 and under born before January 1, 2025. According to Invest America, this funding will target youngsters in ZIP codes where the median household income does not exceed $150,000, ensuring broad accessibility across diverse communities and covering an estimated 25 million eligible children. “Our aim is to assist the kids who aren’t covered by the government’s program,” Dell stated.
Dell credited hedge fund manager Brad Gerstner, chief executive of Altimeter Capital, for sparking his interest in this concept back in 2021. Gerstner subsequently founded Invest America to advocate for the inclusion of these accounts in the sweeping tax legislation. The Trump accounts are designed for simplicity, restricting investments to low-cost, diversified funds that track major U.S. stock market indexes. Gerstner highlighted that this structure allows young Americans to capitalize on the stock market’s historical growth from an early stage, fostering wealth accumulation over time.
While the initial seeds of $250 from the Dells or $1,000 from the federal government may seem modest, Gerstner stressed that their true value lies in encouraging parental contributions, which can compound substantially through consistent saving. The legislation also streamlines large-scale philanthropy and corporate giving; for example, Dell Technologies has committed to matching the $1,000 federal grants for accounts opened by children of its employees. To receive the Dells’ contribution, parents simply need to open a Trump account, making the process straightforward and efficient. “Without this program, reaching so many children on this scale would have been nearly impossible,” Dell remarked.
This type of widespread investment seeding for children has limited historical parallels. One notable example is the Harold Alfond Foundation, which has provided $500 educational grants to every child born in Maine since the shoe magnate’s death in 2007.
Although Trump accounts offer a pathway to building assets, they differ from other savings vehicles like 529 plans or Roth IRAs in their tax treatment. Withdrawals are prohibited until the account holder reaches 18, at which point the funds transfer to an individual retirement account and become subject to income taxes upon distribution.
Dell expressed optimism about inspiring further involvement, having already discussed the program with other prominent philanthropists. “We envision a world where every child has a future they believe is worth investing in,” he said. “The long-term impact of this on millions of lives, compounded over decades, is what truly inspires us.”
