Michael and Susan Dell's conviction is that their $6.25 billion contribution toward 'Trump Accounts' represents the most substantial private pledge for American children.

The historic gift has little precedent, with few single charitable commitments in the past 25 years exceeding $1 billion, much less multiple billions. Announced on GivingTuesday, the Dells believe it’s the largest single private commitment made to U.S. Children.

This initiative is also distinctive because it will function via investment portfolios established by the U.S. Department of the Treasury, which will be overseen by commercial firms. Referred to as “Trump Accounts,” this initiative hasn't commenced yet but was enacted into legislation on July 4th as a component of the president’s signature legislation.

“We believe that if every child can see a future worth saving for, this program will build something far greater than an account. It will build hope and opportunity and prosperity for generations to come,” said Michael Dell, the founder and CEO of Dell Technologies whose estimated net worth is $148 billion, according to Forbes.

With their donation, the Dells will contribute $250 to every eligible child's investment fund, which they stated the Treasury intends to initiate on July 4, 2026. Dell expressed a desire to commemorate the 250th anniversary of America's independence.

“We want these kids to know that not only do their families care, but their communities care, their government, their country cares about them,” said Susan Dell. “And we’re all rooting for them to have a wonderful future, a bright future, and that that’s available to them.”

As stipulated by the recent legislation, the Treasury Department is set to place $1,000 into the savings vehicles of infants born from January 1, 2025, through December 31, 2028, with these funds mandated for investment in an index fund mirroring the broader stock market. However, other families will bear the responsibility of contributing to their children's accounts. Upon reaching the age of 18, these youngsters will have the option to access the money for educational pursuits, property acquisition, or entrepreneurial ventures.

The Dells are hopeful that their contribution will motivate families to claim the accounts and add further funds, even modest sums, allowing it to expand over time in parallel with market performance. Furthermore, they wish for corporations and other charitable individuals to contribute to these accounts.

“It’s hard to give effective dollars away at scale, particularly to the country’s neediest kids in a way that you have confidence that those dollars are going to compound with the upside of the U.S. Economy,” Brad Gerstner, a venture capitalist, who advocated for the passage of this legislation. “And so, this is a unique platform that’s being created by the government that I think can unlock major giving.”

Gerstner, who also established the Invest America Charitable Foundation, is assisting the Treasury with the introduction of these accounts. He stated that the objective of the accounts is to provide young individuals with resources to kickstart their futures, while also enabling them to gain from the expansion of the U.S. Economy via stock investments.

“Fundamentally, we need to include everybody in the upside of the American experiment. Otherwise, it won’t last. And so, at its core, we think it can re-energize people’s belief in free market, capitalist democracy,”″ Gerstner said of the accounts.

According to the U.S. Securities and Exchange Commission, 58% of U.S. Households possessed stocks or bonds in 2022. However, the wealthiest 1% held nearly half the worth of stocks during that same period, with the lowest 50% possessing approximately 1% of stocks.

The Annie E. Casey Foundation reported that approximately 13% of American youth experienced poverty in 2024, with specialists attributing these elevated rates to insufficient social assistance for new mothers and fathers, such as compensated parental leave.

The Dells are set to deposit funds into the accounts of youngsters residing in postal codes where the typical household earnings do not exceed $150,000.

Although the money in the Trump Accounts could assist young individuals whose relatives or employers are able to put funds into them periodically, it won't promptly lessen poverty among children. Reductions to Medicaid, food stamps and child care that were also part of the appropriations bill are expected to decrease the assistance provided to children from less affluent households.

Ray Boshara, senior policy advisor with both the Aspen Institute and Washington University in St. Louis, said he is excited about the idea that the Trump Accounts will be able to receive contributions from the business, philanthropic and governmental sectors.

“We would like to see this idea continue and get better over time, just like any big policy,’ said Boshara, who co-edited the book “The Future of Building Wealth.” “The ACA, Social Security – they start off fairly flawed, but get much better and more progressive and inclusive over time. And that’s how we think about Trump Accounts. It’s a down payment on a big idea that deserves to be improved and there’s bipartisan interest in improving them.”

The Dell couple, via the Michael & Susan Dell Foundation, has disclosed donating $2.9 billion since 1999, primarily concentrating on educational initiatives.

Michael Dell mentioned that their initial plan didn't involve such a substantial contribution to the child investment accounts, but Susan Dell explained that their pledge grew over time.

“We’re thrilled to be spearheading this in the philanthropy sector and are so excited because we know that more people are going to jump on board because really, we can’t think of a better idea and better way to help America’s children,” she said.

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