Michael Dell pledges $6.25 billion to fund Trump accounts for 25 million children

Michael and Susan Dell announced Tuesday that they have set aside $6.25 billion to fund investment accounts for about 25 million American children.

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

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

Dells’ commitment goes hand-in-hand with a new federal government program that allows parents to open tax-advantaged investment accounts for children under 18 with Social Security numbers. Under the federal program, US citizens born from the beginning of 2025 to 2028 will receive a federal grant of $1,000 to create so-called Trump accounts. Parents will be able to open and contribute to these accounts starting July 4, 2026, and IRS guidance has not yet been issued.

The Dells have committed to funding Trump accounts worth $250 for children ages 10 and younger born before Jan. 1, 2025. According to Invest America, the pledged funds will cover 25 million children ages 10 or younger in ZIP codes with a median income of $150,000 or less.

“We want to help children who were not part of the government program,” Dale said.

Dale said he first became interested in setting up 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 has 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 a US stock index. Gerstner said that 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 it would take more than $250 in federal grants from Dells or $1,000 for the accounts to reach a significant amount. However, Gerstner said the seed money encourages parents to add their own money.

He added that the legislation makes it easier for companies and charitable institutions to make charitable contributions on a large scale. Dell Technologies has pledged to match $1,000 grants from the U.S. Treasury deposited into the accounts of new employees’ children.

Parents just have to open a Trump account to automatically receive a grant from the Michael and Susan Dell Foundation.

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

There are few precedents for Dells’ undertaking. The foundation of shoe billionaire Harold Alfond, who died in 2007, issues a $500 educational grant for every child born in Maine.

While Trump accounts are easy to farm, they lack some of the tax advantages of other accounts like 529s or Roth IRAs. Withdrawals are not allowed until the child turns 18, at which point the assets are transferred to the IRA and the withdrawals are taxed.

Dale said he has spoken to other major philanthropists and is optimistic that others will also pledge money to these investment accounts.

“What we hope is that every child will see a future worth saving for,” he said. “You think about the compound impact of a program like this in 10, 20, 30 years on millions of kids. That’s what gets us excited.”