Billionaires Michael and Susan Dell have made a historic philanthropic commitment, donating an unprecedented $6.25 billion to help American children access new investment accounts, known as "Trump Accounts." This massive donation is part of a broader initiative designed to provide a financial safety net for 25 million U.S. children under the age of 10, encouraging families to take advantage of these newly created investment accounts. Here's everything you need to know about this groundbreaking gift and its potential to transform the financial future of millions of young Americans.

What Are "Trump Accounts"?

"Trump Accounts" refer to a new financial program launched by the U.S. Department of the Treasury. As part of President Donald Trump's tax and spending legislation passed into law on July 4, 2025, these accounts are designed to provide children with a foundation for future financial success. The accounts will be funded by both the federal government and private donations, including the Dells’ $6.25 billion gift.

The Trump Accounts will allow families to invest in index funds that track the U.S. stock market. The goal is to help children start building wealth from a young age, with funds to be used for education, homeownership, or even starting a business once they reach adulthood.

Why Did the Dells Donate $6.25 Billion?

Michael and Susan Dell's historic donation marks a significant milestone in philanthropy, particularly in the realm of child development and financial inclusion. Michael Dell, the founder and CEO of Dell Technologies, and his wife Susan believe that the new investment accounts can provide children with a path to financial prosperity, regardless of their socio-economic background.

“We want every child to see a future worth saving for,” said Michael Dell. “By helping them build a financial foundation, we are building hope and opportunity for generations to come.”

The Dells' gift is one of the largest private charitable commitments ever made, far exceeding the usual billion-dollar donations seen in the past few decades. The Dells hope their generous contribution will inspire other philanthropists, businesses, and individuals to contribute to the Trump Accounts initiative.

How Will the Trump Accounts Work?

Under the new law, children born between January 1, 2025, and December 31, 2028, will automatically have a $1,000 deposit made into their Trump Account by the U.S. Treasury. These funds will be invested in index funds, which are designed to mirror the performance of the overall stock market. The goal is for these investments to grow over time, providing a financial cushion when these young adults turn 18.

However, the initial $1,000 is just the beginning. Families can also contribute to the account, with the potential for the investment to grow over time alongside the market. The Dells' $6.25 billion donation will provide a $250 deposit into the accounts of children from households with a median income of $150,000 or less, which is expected to benefit millions of families across the United States.

Once the children reach the age of 18, they will be able to withdraw the funds for specific purposes, including:

• Paying for education or tuition
• Buying a home
• Starting a business

How Does This Initiative Help Families?

The primary aim of the Trump Accounts program is to provide financial security to children, particularly those from lower-income families. In the U.S., financial inequality is a growing concern, with the wealthiest 1% owning a significant portion of the country's wealth. According to the U.S. Securities and Exchange Commission, in 2022, the top 1% of American households owned nearly half of all stocks, while the bottom 50% of households owned just 1%.

By establishing these investment accounts, the Trump Accounts initiative seeks to level the playing field, giving children from all economic backgrounds the opportunity to benefit from the long-term growth of the U.S. economy.

The Dells' donation focuses on children from households earning $150,000 or less, ensuring that lower-income families receive support. This focus aligns with the couple’s long-standing commitment to improving the lives of children through education and economic empowerment.

Why Are These Investment Accounts Important for Future Generations?

In addition to financial support, the Trump Accounts initiative represents an opportunity to instill a sense of financial responsibility and independence in young people. The program encourages families to save for the future, even if it’s just a small amount. By making regular contributions to these accounts, families can take advantage of the compounding growth of the stock market, helping to secure a more prosperous future for their children.

Brad Gerstner, a venture capitalist and founder of Invest America Charitable Foundation, is an advocate for the Trump Accounts initiative. He emphasized that this program is unique because it provides an opportunity for private and public sectors to collaborate in improving the financial prospects of American children.

“It’s hard to give effective dollars away at scale, particularly to the country’s neediest kids in a way that you have confidence that those dollars are going to compound with the upside of the U.S. economy,” Gerstner explained. “The Trump Accounts are a unique platform that can unlock major giving and help re-energize people's belief in free-market capitalism.”

The Potential Impact on Poverty in America

While the Trump Accounts initiative is a major step forward in tackling financial inequality, it won’t immediately address the broader issue of child poverty in the United States. According to the Annie E. Casey Foundation, about 13% of children in the U.S. lived in poverty in 2024. Experts believe that factors like a lack of paid parental leave, insufficient access to healthcare, and rising costs of living are major contributors to this issue.

Additionally, cuts to essential programs like Medicaid, food stamps, and child care, which were included in the same spending package that established the Trump Accounts, could reduce the support available to low-income families.

Nevertheless, experts like Ray Boshara, a senior policy advisor at the Aspen Institute, remain optimistic about the potential of the Trump Accounts to make a positive impact over time. He sees the program as a “down payment” on a much larger and more inclusive vision for building wealth in America.

“Just like any big policy, the Trump Accounts will evolve over time. Programs like Social Security and the ACA started off flawed but have gotten better and more progressive. We believe the same will happen with Trump Accounts,” Boshara said.

How Can Other Philanthropists and Companies Contribute?

The Dells’ $6.25 billion donation is expected to spark further contributions to the Trump Accounts initiative. The couple hopes that their gift will inspire other philanthropists, businesses, and government agencies to make their own donations, thereby ensuring the long-term success of the program.

“We’re thrilled to be spearheading this in the philanthropy sector,” said Susan Dell. “We know that more people will jump on board because this is one of the best ideas to help America’s children. It’s an opportunity we can’t afford to miss.”

The Dells’ commitment underscores their broader focus on improving education and financial stability for children. Through their charitable organization, the Michael & Susan Dell Foundation, the couple has already donated $2.9 billion to various causes since 1999, with a focus on educational initiatives.

A Bright Future for America’s Children

With the launch of Trump Accounts and the Dells' historic donation, there is renewed hope for children across the United States. This initiative has the potential to transform the lives of millions of young people by giving them access to capital that can fuel their dreams and create opportunities for economic mobility.

As the program rolls out in 2026, it will be important to monitor its effectiveness and make adjustments as needed. However, the Trump Accounts initiative represents a bold step toward ensuring that every child, regardless of background, has the tools they need to build a brighter future.

Conclusion

The $6.25 billion donation from Michael and Susan Dell to fund Trump Accounts for children is a game-changing initiative that aims to provide young people with the financial resources they need to succeed in life. By giving children the opportunity to invest in the stock market and grow wealth over time, the Dells hope to build a future where all American children have access to the same opportunities for success.

This philanthropic effort will not only encourage families to invest in their children’s futures but will also help address financial inequality in the U.S., empowering the next generation of leaders, entrepreneurs, and innovators. It is a groundbreaking move that could reshape the future of financial inclusion in America.