Michael and Susan Dell pose for photographs on Nov. 26 in New York. The couple said they will donate $6.25 billion to fund investment accounts for 25 million U.S. children.
Frank Franklin II/AP
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Frank Franklin II/AP
Michael and Susan Dell have announced a $6.25 billion donation to establish investment accounts for 25 million U.S. children, as part of a plan unveiled on Tuesday. The funds will support “Trump Accounts” that were recently introduced into law.
Each eligible child will receive $250 in their account, which will be invested in low-cost stock funds to grow over time.
“The goal is to provide millions of children with a financial head start for the future,” stated Michael Dell in an interview with NPR. “Research shows that children with such accounts, even with small amounts, tend to have better life outcomes.”
Michael Dell serves as the CEO of Dell Technologies.
Here’s a brief overview of the accounts and the initiative by the Dells:
Who is eligible for the Dells’ donation?
To qualify for the Dell donation, children must have Social Security numbers, be aged 10 or under, and born before Jan. 1, 2025.
The Dells aim to reach children in need by targeting recipients from ZIP codes with a median income below $150,000.
The Dells stated that the donation will benefit nearly 80% of eligible children in the specified age group, covering 75% of ZIP codes in the U.S.
Parents must set up “Trump Accounts” to receive the donation
As per the One Big Beautiful Bill Act, every American baby born from this year until 2028 is entitled to receive a Trump Account funded with $1,000 from the U.S. Treasury.
All children under 18 with a Social Security number are eligible for the accounts, but they do not receive the initial $1,000.
The Dells’ donation is intended to support older children who are not covered by the federal program.
“Our gift targets children aged 10 and under who are not part of the federal initiative,” explained Dell.
Susan Dell advised parents to “mark their calendars for July 4, 2026, when they can claim the accounts for their children.”
How Trump Accounts operate
Trump Accounts will grow over time through investments in low-cost stock funds that track market indexes. When the children reach 18, they can either convert the funds into a retirement account or use them for education, home purchase, or business startup.
Parents and others can contribute up to $5,000 annually until the child turns 18.
Financial experts view Trump Accounts as a blend of existing plans, with potential benefits varying based on family contributions.
According to White House estimates, maximum contributions to a Trump Account could grow to nearly $1.1 million by the beneficiary’s 28th birthday. However, without additional contributions, the account value could be significantly lower at $18,100.
Key details regarding the administration of Trump Accounts are still pending. A recent update from Charles Schwab mentioned, “It is currently unclear who will open the account or where it will be held.”
Families interested in the plan are advised to consult a tax or financial advisor, according to the investment bank.
