Largest Philanthropic Gift Ever Directed to American Children
Michael and Susan Dell announced a landmark commitment of $6.25 billion to help fund long-term investment accounts for an estimated 25 million U.S. children. The donation, coordinated through the nonprofit Invest America, is being described as the largest philanthropic contribution ever devoted specifically to American children.
Michael Dell told CNBC that the initiative aims to give families a stronger financial foundation early in life. He noted research showing that children with even modest investment accounts are more likely to reach milestones such as higher education, homeownership, entrepreneurship, and are statistically less likely to face incarceration.
Aligned with New Federal “Trump Accounts” Program
The pledge complements a new federal program allowing parents to open tax-advantaged “Trump accounts” for children under 18. Beginning in 2026, parents will be able to open and contribute to these accounts, which are seeded with a $1,000 federal grant for U.S. citizens born between 2025 and 2028. IRS guidance for the program is expected next year.
The Dells’ funds will support children who fall outside this federal eligibility window. They will provide $250 to Trump accounts for children aged 10 or under who were born before January 1, 2025. According to Invest America, the $6.25 billion commitment will cover approximately 25 million children living in ZIP codes with median household incomes of $150,000 or less.
Encouraging Savings and Long-Term Growth
The concept first captured Dell’s attention after a conversation with hedge fund manager Brad Gerstner, the founder of Altimeter Capital and later Invest America. Gerstner helped drive the policy into federal legislation and said the accounts allow children to benefit from decades of U.S. stock market growth. The accounts are restricted to low-cost diversified index funds to ensure straightforward, long-term investing.
Gerstner emphasized that while the initial seed money is modest, it serves as a catalyst for parents to contribute regularly and build meaningful savings over time. The design of the federal program also makes large-scale philanthropic involvement easier. Dell Technologies has already pledged to match the $1,000 federal grant for the children of its employees.
How the Accounts Work and What Comes Next
Parents simply need to open a Trump account for their child to automatically receive the Dells’ contribution. Withdrawals from these accounts are restricted until the child turns 18, at which point the assets will be transferred into an IRA. Withdrawals from that IRA will be subject to tax, unlike 529 plans or Roth IRAs.
Michael Dell said he has discussed the initiative with other major U.S. philanthropists and is optimistic about wider participation. He pointed to the potential long-term impact: “You think about the compounding effect of a program like this in 10, 20, 30 years on millions of children. That’s what gets us excited.”
