Watch: Dell family pledges more than $6 billion to US children to build on ‘Trump accounts’

NEW YORK (AP) — Billionaires Michael and Susan Dell pledged $6.25 billion Tuesday to provide an incentive for 25 million American children 10 and younger to claim new children’s investment accounts created as part of President Donald Trump’s tax and spending legislation.

Watch the event in the player above.

This historic gift is unprecedented, as few individual philanthropic commitments in the past 25 years have exceeded $1 billion. Announced on GivingTuesday, the Dells believe it is the largest private commitment ever made to children in the United States.

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Its structure is also unusual. It relies primarily on the “Trump Accounts” program, where the US Treasury will deposit $1,000 into investment accounts it creates for American children born between January 1, 2025, and December 31, 2028. The Dells gift will use the “Trump Accounts” infrastructure to give $250 to each eligible child under the age of 11.

“We believe that if every child can see a future worth saving for, this program will build something much greater than an account,” said Michael Dell, founder and CEO of Dell Technologies, whose net worth is estimated at $148 billion, according to Forbes. “It will build hope, opportunity and prosperity for generations to come.”

Although “Trump Accounts” became law as part of legislation the president signed in July, the Dells say the accounts will not be launched until July 4, 2026. Michael Dell said they want to celebrate the 250th anniversary of US independence.

“We want these children to know that not only do their families care about them, but their communities, their government and their country care about them,” Susan Dell told the Associated Press.

Under the new law, “Trump Accounts” are available to any American child under the age of 18 who has a Social Security number. Account contributions must be invested in an index fund that tracks the overall stock market. When children turn 18, they can withdraw money for their education, buy a house, or start a business.

The Dells will put the money into the accounts of children ages 10 and younger who live in ZIP codes with a median family income of $150,000 or less who will not receive the initial $1,000 from the treasury. Because federal law allows third-party donors to target gifts by geographic location, Dills said using zip codes was “the clearest way to ensure a contribution reaches the largest number of children who will benefit most.”

The Dells hope their gift will encourage families to claim the accounts and deposit more money into them, even small amounts, so that they grow over time along with the stock market.

There is political benefit for Trump and his fellow Republicans. The accounts will become available in the midst of the midterm elections, providing money to millions of voters — and a campaign talking point for GOP candidates — at a politically critical time. The $1,000 deposits are scheduled to expire immediately after the 2028 presidential election.

At the White House on Tuesday, Trump praised the Dells, saying their gift was “truly one of the most generous acts in the history of our country.”

Trump said many companies and many of his friends will also donate, adding, “I will, too.”

Venture capitalist Brad Gerstner, who championed the legislation, said the accounts would give all children renewed hope in the American dream.

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“It’s difficult to give effective dollars at scale, especially to the neediest children in the country, in a way that you have confidence that those dollars will compound with the upside of the U.S. economy,” said Gerstner, who is also the founder of the charity Invest America, which is supporting the Treasury Department in launching the accounts.

“Fundamentally, we need to engage everyone in the positive side of the American experiment,” Gerstner said of these accounts. “Otherwise, it won’t last. And so, at its core, we believe it can revitalize people’s faith in the free market and capitalist democracy.”

About 58% of U.S. households owned stocks or bonds in 2022, according to the U.S. Securities and Exchange Commission, although the richest 1% owned nearly half the value of stocks that same year, and the bottom 50% owned about 1% of stocks.

In 2024, about 13% of children and youth in the United States were living in poverty, according to the Annie E. Casey Foundation, and experts link high rates of child poverty to a lack of social support for new parents, such as paid parental leave.

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While the money in Trump’s accounts may help young people whose families or employers can contribute over time, it will not immediately help reduce child poverty. Cuts to Medicaid, food stamps and child care that were also included in the spending package would likely reduce support for children from low-income families.

Ray Bishara, a senior policy advisor at both the Aspen Institute and Washington University in St. Louis, said he was excited about the idea that Trump’s accounts would be able to receive contributions from the business, philanthropic and government sectors.

“We would like to see this idea continue and improve over time, just like any big policy,” said Bishara, who co-edited the book “The Future of Wealth Building.” “The Affordable Care Act and Social Security — they start out pretty flawed, but they get much better and more advanced and comprehensive over time. And that’s the way we think about Trump’s calculations. It’s a down payment on a big idea that’s worth improving, and there’s bipartisan interest in improving it.”

Through the Michael and Susan Dell Foundation, Dell has announced $2.9 billion in giving since 1999, with a major focus on education.

Michael Dell said they didn’t initially envision committing so much to boosting children’s investment accounts, but Susan Dell said that changed over time.

“We are thrilled to be leading this philanthropic sector and are so excited because we know that more people will join us because we really can’t think of a better idea and a better way to help America’s children,” she said.

AP writer Darlene Superville in Washington contributed to this report.