NEW YORK (AP) – Billionaires Michael and Susan Dell pledged $6.25 billion on Tuesday under incentives for 25 million American children to provide 10 and claim new investment accounts for children created as part of President Donald Trump’s tax and spending law.
There is little precedent for historic giving with some single philanthropic commitments exceeding $1 billion over the past 25 years. Announced on GivingTuesday, the Dells believe this is the largest single private commitment ever made to American children.
Its structure is also unusual. Essentially, it builds on the “Trump Accounts” program, where the U.S. Treasury Department will deposit $1,000 into investment accounts set up for American children born between January 1, 2025 and December 31, 2028. Dale’s gifts will use the “Trump Accounts” infrastructure to qualify each under $1250.
“We believe that if every child can see a future worth saving for, this program will build something much bigger than an account. It will build hope and opportunity and prosperity for future generations,” said Michael Dell, founder and CEO of Dell Technologies, whose estimated net worth is $148 billion, according to Forbes.
Although the “Trump accounts” became law as part of the president’s signature legislation in July, Dales said the accounts would not begin until July 4, 2026. Michael Dale said they wanted to celebrate the 250th anniversary of America’s independence.
“We want these kids to know that not only their families care, but their communities, their government, their country cares about them,” Susan Dale told The Associated Press.
Under the new law, “Trump accounts” are available to any American child under 18 with a Social Security number. Account contributions must be invested in an index fund that tracks the overall stock market. When children turn 18, they can withdraw funds to spend on their education, buy a house or start a business.
The Dells will place money in the accounts of children 10 and younger who live in ZIP codes with a median family income of $150,000 or less and who do not receive a $1,000 seed money from the Treasury. Because federal law allows outside donors to target gifts by geography, Dales said using ZIP codes was “the clearest way to ensure that contributions reach the largest number of children who will benefit the most.”
The Dells hope their gift will encourage families to claim accounts and deposit more money into them, even in small amounts, so it will grow over time with the stock market.
There is political leverage for Trump and fellow Republicans. The accounts will be available in the middle of the midterm elections, providing money to millions of voters — and campaign points to GOP candidates — at a politically critical time. The $1,000 deposit is expected to expire after the 2028 presidential election.
At the White House on Tuesday, Trump praised Dale’s gift, saying it was “really one of the most generous acts in the history of our country.”
Trump said many companies and many of his friends would also donate, adding, “I’ll do it, too.”
Brad Gerstner, a venture capitalist who championed the legislation, said the accounts would give all children new hope for the American dream.
“It’s hard to give effective dollars, especially to the nation’s neediest children, with confidence that those dollars will compound at the top of the U.S. economy,” said Gerstner, also the founder of the Invest America Charitable Foundation, which helped the Treasury launch the account.
“Fundamentally, we need to include everyone in the reversal of the American experiment. Otherwise, it’s not going to last. And so, at its core, we think it can reinvigorate people’s faith in free-market, capitalist democracy,” Gerstner said of the accounts.
According to the U.S. Securities and Exchange Commission, about 58% of American households owned stocks or bonds in 2022, although the richest 1% owned about half the value of stocks that same year and the bottom 50% about 1%.
Annie E. According to the Casey Foundation, in 2024, nearly 13% of children and youth in the U.S. will be living in poverty, and experts attribute high child poverty rates to a lack of social supports for new parents, such as paid parental leave.
While funds in Trump accounts can help young adults whose families or employers contribute to them over time, they won’t immediately help reduce childhood poverty. Cuts to Medicaid, food stamps and child care that were also included in the spending package are likely to reduce support for children in low-income families.
Ray Boshara, a senior policy adviser at both the Aspen Institute in St. Louis and Washington University, said he was excited by the idea that Trump accounts would be able to receive contributions from the business, philanthropic and government sectors.
“We want to see this idea continue and get better over time, like any big policy,” said Boshara, who co-edited the book “The Future of Wealth Building.” “ACA, Social Security — they start out pretty flawed, but get better and more progressive and inclusive over time. And that’s how we think about the Trump accounts. It’s a down payment on a big idea that deserves reform and there’s a bipartisan interest in reforming them.”
Through the Michael and Susan Dell Foundation, Dell has reported giving $2.9 billion since 1999, with a major focus on education.
Michael Dell said they didn’t initially envision such a commitment to promoting child investment accounts, but Susan Dell said that changed over time.
“We’re excited to lead this in the philanthropic space and very excited because we know a lot of people are going to jump on board because, really, we can’t think of a better idea and a better way to help America’s kids,” she said.
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AP writer Darlene Superville in Washington contributed to this report.
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