Michael and Susan Dell pledge $6.25 billion to boost children’s ‘Trump accounts’

Michael Dell, whose net worth Forbes estimates at $148 billion, said the goal was to build “hope, opportunity and prosperity for generations to come.” The Dells will deposit $250 into each eligible child’s account, tied symbolically to the 250th anniversary of US independence.

Under the law, the Treasury will contribute $1,000 to accounts of children born between January 1, 2025, and December 31, 2028, with the funds required to be invested in an index fund. Families of other eligible children may choose to contribute themselves, and the money can be withdrawn at 18 for education, housing or business needs.

The Dells hope their donation will spur families to engage with the programme and encourage additional contributions from philanthropies and companies. Supporters argue the accounts will allow children, especially those from low-income communities, to share in long-term gains of the US economy.

Brad Gerstner, a venture capitalist and founder of the Invest America Charitable Foundation, said the initiative gives disadvantaged children a rare opportunity to build wealth through stock market growth. “Fundamentally, we need to include everybody in the upside of the American experiment,” he said.

Today, only 58% of US households own stocks or bonds, and the top 1% holds nearly half of all stock value, according to the US Securities and Exchange Commission. In 2024, 13% of US children lived in poverty.

While the accounts aim to support long-term wealth-building, they will not offset immediate losses for low-income families from Medicaid, food stamp and child-care cuts included in the same legislation.

As per a report by AP, public policy expert Ray Boshara welcomed the concept but said the programme, like Social Security or the ACA, would need refinement over time. “It’s a down payment on a big idea that deserves to be improved,” he said.

The Dell Foundation has donated $2.9 billion since 1999, largely toward education. Susan Dell said the couple increased their pledge as the programme evolved: “We can’t think of a better way to help America’s children.”