Tech billionaire Michael Dell and his wife Susan Dell have announced an extraordinary $6.25bn donation aimed at supporting millions of young children across the United States. The couple plans to give $250 to 25 million children, helping seed newly created Trump-branded investment accounts approved by Congress earlier this year as part of a tax and spending package.
These accounts were designed to encourage long-term financial security by helping families begin saving for retirement. Under the federal plan, babies born between 2025 and 2028 automatically qualify for a $1,000 government deposit, creating a nationwide baseline for early savings.
Dell Donation Targets 80% of US Children Age 10 and Under
The Dells said their gift is intended to significantly expand this opportunity by assisting children aged 10 and younger, even those born before January 1, 2025, as long as they live in communities where the median income is below $150,000.
“We’ve seen what happens when a child gets even a small financial head start — their world expands,” Michael Dell said in a social media video announcing the initiative. The Dell family expects their donation to reach nearly 80% of all US children in the eligible age bracket, making it one of the largest private contributions ever made directly to American families.
Dell, whose wealth is estimated by Forbes at around $150bn, also called on fellow philanthropists and major employers to support similar efforts.
President Donald Trump hailed the announcement online, writing: “Two great people. I love Dell!!!”
How the New Trump Child Savings Accounts Work
The funds gifted by the Dells — and future contributions from parents or employers — will flow into Trump-branded investment accounts, a new type of federally approved savings structure.
Key features include:
- Parents can contribute up to $5,000 annually in after-tax dollars.
- By law, all funds must be invested in a broad stock market index fund.
- Additional contributions may come from charities, employers, or other donors.
- Children gain access to the account at age 18, after which it converts into a retirement account.
- Money grows tax free, but early withdrawal penalties may apply before age 59½.
The White House Council of Economic Advisers estimates that the initial $1,000 government deposit could grow to over $5,800 after 18 years at a projected 10.3% annual return.
The system has not yet launched publicly; the government says full account setup options will roll out next year.
Mixed Reactions and Policy Criticism
Although supporters praise the accounts as a way to encourage financial literacy and savings, critics argue that the structure could complicate America’s already complex investment landscape.
The Tax Foundation described Trump accounts as “well intentioned” but warned they would “add another layer to an already overcomplicated savings account system”. Analysts say wealthier families — those with more disposable income — may benefit the most.
Treasury Secretary Scott Bessent has also faced backlash from Democrats after describing the program as a potential step toward privatizing Social Security, calling the accounts a “backdoor” for reshaping retirement benefits.
Despite the controversy, the Dell family’s donation marks a historic moment in US philanthropy — a massive private effort to provide millions of children with a financial foundation at the very start of their lives.
