Dells Commit $6.25 Billion to Children’s Investment Accounts
Michael and Susan Dell announced on Tuesday a remarkable commitment of $6.25 billion to support the “Trump Accounts” for 25 million American children.
This is being hailed as potentially the largest single donation aimed at children in the U.S., according to the nonprofit Invest America, which collaborates with the Dells to facilitate the creation of investment accounts through the U.S. Treasury.
A new initiative included in President Trump’s “Big and Beautiful Bill” will enable parents to set up tax-advantaged investment accounts for children under 18 who possess Social Security numbers.
For U.S. citizens born between January 1, 2025, and December 31, 2028, the U.S. Treasury plans to provide a $1,000 federal grant for these accounts.
In addition, the Dells aim to seed accounts with grants of $250 for most children born before 2025 and under the age of 10. Children aged 10 and older may qualify for a subsidy if funds are still available.
The donation targets 25 million American children residing in neighborhoods where the median income is below $150,000.
The Dells expressed in a statement on Giving Tuesday that what motivated them most was the possibility of extending this opportunity to a larger number of children. “If there’s one investment that never stops growing, it’s investing in our children. They are our future,” they stated.
Michael Dell, who founded Dell Technologies as a freshman at the University of Texas, has a net worth reported at $148.5 billion by Forbes.
Though the Trump accounts haven’t been opened yet, parents will be able to establish accounts and start making contributions from July 4, 2026.
Brad Gerstner, a venture capitalist and head of Invest America, mentioned that the primary goal of these accounts is to set children up for success by allowing them to gain from the stock market’s growth.
These accounts will be limited to investments in low-cost, diversified funds that reflect U.S. stock indexes.
The Dells hope their generous donation will motivate families to set up accounts and invest more for their children’s futures.
As an added incentive, parents can automatically receive a $250 gift just for opening an account.
The broader Republican tax and spending legislation will also simplify the process for major corporations, employers, and philanthropists to contribute to these investment accounts on a grand scale.
For instance, Dell Technologies has pledged a $1,000 grant from the U.S. Treasury for the newborns of its employees.
However, it’s important to note that Trump accounts won’t offer the same tax advantages as 529 accounts or Roth IRAs. Withdrawals from these accounts won’t be permitted until the child turns 18, after which the assets will be transferred to an IRA, with any withdrawals being subject to taxation.
