Michael Dell gives $6.25 billion to launch ‘Trump Accounts’ for 25 million kids

Dell CEO Michael Dell (Photo: Bloomberg)

In an unprecedented philanthropic gift, Michael and Susan Dell will give 25 million American children $250 each to jumpstart an investment account for their futures.

The $6.25 billion gift builds on the Invest America initiative — better known as “Trump accounts” — created earlier this year as part of President Donald Trump’s One Big Beautiful Bill Act. Under the program, the government will automatically seed an account with $1,000 for each child born between 2025 and 2028.

The Dells’ gift will go to the Treasury Department and will fund accounts for an additional 25 million children 10 and under who aren’t already eligible for the government money. Dell, 60, said he is initially targeting zip codes with median household incomes below $150,000 and expects to reach 80% of US children in that age range.

“We believe that if every child can see a future that’s worth saving for, we’re going to build something far greater than an account,” Dell said in an interview. “We will build hope and opportunity and prosperity for generations to come.”

Dell, who’s the 11th-richest person in the world with a $148 billion fortune, according to the Bloomberg Billionaires Index, has been a public champion of the Trump accounts.

In June, the founder and chief executive officer of Dell Technologies Inc. attended an “Invest in America” roundtable alongside other CEOs, including Goldman Sachs Group Inc.’s David Solomon and Uber Technologies Inc.’s Dara Khosrowshahi.

At the event, Trump touted the investment accounts and credited Dell with bringing the idea to him. Dell announced that his company would match the government’s $1,000 contribution for employees’ children.

‘Every Child’
Under the government initiative, which begins on July 4, 2026, any parent can open an account for their child and contribute up to $5,000 a year. Employers can pitch in $2,500 annually without affecting workers’ taxable income. Additional gifts from philanthropists like Dell or governments don’t count against the limit.

The money will be invested in diversified, low-cost index funds and won’t be accessible until the child turns 18, at which point it can be withdrawn for expenses such as a college education, home deposit or startup costs. Assets in Trump accounts are allowed to grow tax-free, though recipients must pay taxes on their gains when the money is withdrawn.

“For us, it’s really an opportunity to give every child a little bit of a start in building their future,” Dell said.

Silicon Valley venture capitalist Brad Gerstner launched the Invest America nonprofit in 2023 with the idea of disbursing money to American children to shrink the wealth gap and increase financial literacy.

“The wealth gap has widened, and we haven’t come up with anything tangible to deal with it,” Gerstner, the founder of Altimeter Capital, said in an interview. “This will dramatically alter the fortunes of the people who have been left out and left behind.”

Gerstner said he hopes the accounts will unlock a new way for government, companies and individuals like Dell to invest in children’s futures.

“This isn’t just about a private account for every child at birth seeded with $1,000 from the federal government,” Gerstner said. “This becomes a platform for every company in America to contribute to the kids of their employees; for moms and dads and churches and synagogues to contribute to the accounts of the kids of their family or kids in their community.”

Dell’s Dream
Dell knows the transformative power of $1,000.

On his LinkedIn page, his profile simply states: “I started Dell in 1984 with $1000 in my freshman dorm room at the University of Texas.” His eponymous company has grown into a computing giant with a market value of nearly $90 billion.

Dell and his wife own about 40% of Dell Technologies, according to Bloomberg’s wealth index. He also acquired a sizeable stake in Broadcom Inc. when it bought VMWare — which was spun out from Dell Technologies — in 2023. Broadcom’s shares are up roughly 300% since then, boosted by spending on artificial intelligence.

The couple’s contributions to their foundation have climbed sharply, from an average of about $57 million a year between 2020 and 2022, to nearly $3.6 billion in 2023, including $1.7 billion in Broadcom stock. Donations in 2024 totaled $1.45 billion.

To date, the Michael & Susan Dell Foundation has committed more than $2.9 billion in donations, according to its website. Children have been a major focus of its giving, including scholarships, charter-school expansion and the Dell Children’s Medical Center in Austin.