Michael and Susan Dell’s $6.25 Billion Pledge to Trump Accounts: How They’re Funding $250 Investments for 25 Million American Kids Under 10

Billionaires Michael Dell and Susan Dell have pledged US $6.25 billion to fund the new “Trump Accounts” — that money will top up the accounts by US $250 each for about 25 million American children under 10.

Key Takeaways

• The Dell couple’s pledge injects $250 per child for 25 million kids — roughly 80% of U.S. children under 10 across 75% of ZIP codes.
• The “Trump Accounts” are part of the government’s plan: for children born 2025–2028, the U.S. Treasury deposits $1,000. The Dell donation covers kids born before 2025 who wouldn’t get that initial federal money.
• Funds in each account are invested in low‑cost index funds and can only be touched when the child turns 18 — for education, first home, job training, or starting a business.
• The initiative aims to give millions of American children a financial head‑start. But critics warn: the benefit may be modest, and alone won’t resolve deeper issues like child poverty or inequality.

What Are Trump Accounts — And Where the Dell Pledge Fits In

What the Program Does

• The Trump Accounts — formally under the “U.S. Department of the Treasury / Invest America initiative — create investment accounts for children with a Social Security number. Accounts launch on July 4, 2026.
• For kids born Jan 1, 2025–Dec 31, 2028, the Treasury will automatically deposit $1,000 at birth.
• Parents, relatives, and others can contribute up to $5,000 a year; employers up to $2,500. The money must be invested in broad index funds (e.g. S&P 500), no leverage, low fees.
• Money stays locked until the child turns 18, at which point the funds can be withdrawn for education, first home, entrepreneurship or kept growing as a retirement‑style account.

Where the Dells Come In

• The Dells’ $6.25B pledge aims to extend the benefit beyond newborns: it gives $250 to each eligible child under 10 who would otherwise miss out because they were born before 2025.
• Their funds will reach roughly 25 million children, mostly in ZIP codes where median household income is under $150,000 — targeting low‑ to middle-income areas.
• For some older children (over 10), eligibility might open if funds remain.
• As per the Dells, this is “the greatest investment possible” in children — aiming to give them a financial foundation and a stake in future prosperity.

Potential Impact — Promise and Limits

What Looks Good

• Early financial head‑start for millions: Even $250 — invested and compounded over 18 years — can grow substantially. For many low‑income families, it’s unexpected long‑term savings.
• Long-term flexibility: When kids turn 18, they can use money for education, home purchase, or starting a business — potentially opening opportunity pathways.
• Encouraging savings culture: Account structure, lock‑in, and ability of extended family & employers to contribute could foster a culture of early financial planning.
• Broad reach: With 25 million kids covered, the scale is historic — one of the largest private-to-public investments in children ever. The Dells say it’s the largest such philanthropic commitment in U.S. history.

What May Limit the Benefit

What This Means — For Families, Society, and Philanthropy

• For low/middle‑income families, this could act as a nest‑egg, a small but meaningful financial buffer for future needs — beyond what typical savings or college funds offer.
• For society, the move marks a shift in how public welfare and private philanthropy can combine: creating long‑term capital for youth rather than immediate consumption‑based aid.
• For wealthy donors and corporates, the Dells’ example may set a new benchmark: large‑scale, outcome‑oriented giving with measurable long-term benefits rather than one‑off charity.

At the same time — it nudges us to ask tough questions about structural inequality. Will a $250 headstart truly level the playing field? Or will it help only those already in a position to contribute more?

Frequently Asked Questions