Michael Dell pledges $6.25 billion to fund Trump account for 25 million children

Michael and Susan Dell announced Tuesday that they have pledged $6.25 billion to invest in nearly 25 million American children.

Invest America, a nonprofit advocacy group affiliated with the Dells, said the couple’s donation is the largest ever given to children in the United States.

“It’s designed to help families feel supported from the start and encourage them to continue saving as their children grow,” said Michael Dell, founder and CEO. Dell Technologiessaid in an interview with CNBC. “We know that when kids have these accounts, they are much more likely to graduate from high school and college, buy a home, start a business, and are less likely to be incarcerated.”

The Dells’ efforts align with a new federal program that allows parents to open tax-advantaged investment accounts for children under 18 with Social Security numbers. Under a federal program, U.S. citizens born between early 2025 and 2028 will receive a $1,000 federal grant to grow a so-called “Trump Account.” Although IRS guidance has not yet been released, parents will be able to open and contribute to these accounts starting July 4, 2026.

The Dells have pledged to donate $250 to Trump’s account for each child under 10 born on or before January 1, 2025. According to Invest America, the promised funds will cover 25 million children in zip codes under the age of 10 with a median income of $150,000 or less.

“We want to help kids who didn’t get into government programs,” Dell said.

Dell said he first became interested in seeding children’s investment accounts after hearing about the idea from hedge fund manager Brad Gerstner around 2021. Mr. Gerstner, CEO of Altimeter Capital, later founded Invest America and advocated for the program to be included in the One Big Beautiful Building Act.

Trump Accounts can only be used to invest in low-cost diversified funds that track U.S. stock indexes. Gerstner said these accounts and grants give American children the opportunity to benefit from the growth of the U.S. stock market from an early age.

Gerstner said it would take more than $250 from Dell and $1,000 in federal grants to reach that huge amount. But Gerstner said Seed Money encourages parents to add funds themselves.

He added that the law will make it much easier for businesses and philanthropists to make large-scale charitable donations. Dell Technologies has committed to matching $1,000 grants from the U.S. Treasury deposited into the accounts of employees’ new children.

Parents can automatically receive grants from the Michael and Susan Dell Foundation simply by opening a Trump Account.

“Without programs like this, it would be unrealistic or impossible to have this impact on so many children,” Dell said.

The Dells’ pledge has little precedent. The foundation of shoe billionaire Harold Alfond, who died in 2007, issues a $500 education grant to every child born in Maine.

Trump accounts are easy to seed, but they lack some of the tax benefits that other accounts, such as 529 accounts or Roth IRAs, have. Withdrawals are not allowed until the child turns 18, at which point the assets are placed in the IRA and withdrawals are taxable.

Mr. Dell said he has spoken with other major philanthropists and is optimistic that others will also pledge funds to these investment accounts.

“What we want is for every child to see a future worth saving for,” he said. “When you think about the compounding impact that programs like this will have on millions of children 10, 20, 30 years from now, that excites us.”