Michael and Susan Dell Announce $6.25 Billion Donation for American Kids
Michael and Susan Dell have pledged a substantial $250 contribution to “Trump accounts” for 25 million American children, translating to a total investment of $6.25 billion aimed at enhancing the financial futures of young Americans.
Overview of the Donation
The funds will be allocated to children aged 10 and under who were born before the cutoff date for the Trump accounts, which are part of a recent tax and spending legislation passed by the Republican Party. The Trump accounts are designed to provide $1,000 to infants born during the second term of President Trump, with the hope of fostering savings and investment at an early age.
In a statement, the Dells emphasized the practical nature of this initiative, stating, “Children older than 10 may benefit, too, if funds remain available after initial sign-ups. It is an incredibly practical and direct step to help families begin saving today.”
Michael Dell, ranked the 11th richest person in the world with a net worth of $148 billion, expressed a strong belief in the importance of investing in children’s futures. “We believe the smartest investment we can make is the start in children,” he said during a segment on “CBS News 24/7 Mornings.”
Encouraging Broader Philanthropy
The Dells are also urging other philanthropists and businesses to contribute to these accounts. “When a child has an account like this, even a modest sum, it improves their outlook on life,” Michael Dell noted, highlighting research that correlates savings with higher educational attainment and improved prospects for adulthood.
The announcement coincided with Giving Tuesday, an annual event that promotes charitable giving, underscoring the Dells’ commitment to philanthropy through their foundation.
What Are “Trump Accounts”?
The Trump accounts, formally known as Invest America, are set to automatically enroll every child born in the U.S. between January 1, 2025, and January 1, 2029, provided they and their parents have Social Security numbers. Sign-ups are scheduled to start on July 4, 2026. These accounts will be funded initially with $1,000 from the U.S. Department of Treasury, and additional contributions of up to $5,000 can be made annually by parents and others.
Parents will need to complete a simple IRS Form 4547 to activate the accounts, which will be limited to investments in low-cost, broad U.S. stock funds. The funds will not be accessible until the child turns 18, at which point they may be used for qualified expenses, including education, homeownership, and entrepreneurship.
Details on the Dells’ Contributions
The Dells’ $250 contributions will specifically assist children under the age of 10 born prior to 2025, who are not eligible for the initial $1,000 under the Invest America initiative. Should there be additional funds remaining, older children may be considered for the contributions.
Those accounts will mirror the guidelines of the Trump accounts, with the funds locked until the child reaches adulthood, at which point they can be utilized for educational or home purchasing expenses. Following the child’s 18th birthday, the accounts will automatically transition into a traditional IRA, allowing continued growth of any unused funds.
This ambitious initiative from the Dells aims not only to provide immediate financial assistance but also to inspire a broader movement toward investing in the future of American children.