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Tech magnate and wife commit billions to children's investment initiative
Michael and Susan Dell announced a $6.25 billion donation on Tuesday to fund Trump-branded savings accounts for millions of American children under 10, aiming to expand financial opportunities nationwide.
How the program works
Congress approved the accounts earlier this year as part of a tax and spending package, designed to encourage families to save for their children's future. Each account is legally required to invest in a low-cost stock market index fund.
The federal government will contribute $1,000 to accounts for babies born between 2025 and 2028. Parents, employers, and charities can add up to $5,000 annually, adjusted for inflation. The funds grow tax-free but become accessible only at age 18, converting into a retirement account with penalties for early withdrawal.
Eligibility and reach
The Dell donation targets children aged 10 and younger living in households with median incomes below $150,000. The couple estimates their gift will cover nearly 80% of eligible children in the U.S., making it one of the largest private donations directly benefiting Americans.
"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 announcement.
Michael Dell, Dell Technologies CEO
Political and economic reactions
President Donald Trump praised the initiative at a White House event, calling it a way to give middle-class families "a stake in American prosperity." He suggested the accounts could help children become "very rich someday."
The White House Council of Economic Advisers projected that a $1,000 deposit could grow to over $5,800 in 18 years, assuming a 10.3% annual return. Under the same conditions, $250 could reach approximately $1,600.
Critics argue the program disproportionately benefits wealthier families who can afford additional contributions. Treasury Secretary Scott Bessent faced backlash from Democrats for framing the accounts as a "backdoor to privatizing Social Security."
"Trump Accounts do not offer much of an additional incentive to save. The main benefit is the $1,000 federal deposit and employer contributions,"
The Tax Foundation
Implementation timeline
The Treasury Department released a form on Tuesday for parents to establish accounts during tax filing. Full details on administration will be available in 2026, with the program set to launch in July. While accounts cannot yet be opened, the Dells' donation will be routed through the system once operational.
Public response
Grayson Chester, a Seattle tax lawyer and new father, called the $1,000 government deposit "free dollars on the table." While he prefers existing education-focused savings plans like 529s, he plans to accept the federal contribution and invest it for his two-month-old son.
Dell Technologies is among employers pledging to contribute to employees' accounts, potentially increasing the program's appeal.
