Michael and Susan Dell announced a commitment of $6.25 billion on Tuesday to fund investment accounts for approximately 25 million American children. According to the nonprofit advocacy group Invest America, which partnered with the Dells, the donation is the largest of its kind ever devoted to the nation’s youth.
The pledge complements a new federal program that establishes tax-advantaged investment accounts, known as Trump accounts, for children under 18. While the federal initiative provides a $1,000 grant to U.S. citizens born between 2025 and 2028, the Dells’ contribution targets children born before this period.
Their foundation will seed accounts with $250 for children who are 10 or younger as of January 1, 2025, and live in ZIP codes with a median income of $150,000 or less. “We want to help the children that weren’t part of the government program,” said Michael Dell, founder and CEO of Dell Technologies.
“It’s designed to help families feel supported from the start and encourage them to keep saving as their children grow,” Dell stated. “We know that when children have accounts like this, they’re much more likely to graduate from high school, from college, buy a home, start a business and less likely to be incarcerated.”
Dell credited the idea to hedge fund manager Brad Gerstner, CEO of Altimeter Capital, who founded Invest America to advocate for the program’s inclusion in the One Big Beautiful Bill Act. Gerstner explained that the accounts, which must be invested in low-cost U.S. stock index funds, give children a chance to benefit from market growth from an early age. He noted that the initial grants are intended to encourage parents to contribute their own funds for substantial long-term growth.
The new legislation also streamlines large-scale charitable contributions from corporations and philanthropists. Dell Technologies has already pledged to match the $1,000 federal grants for the newborn children of its employees. To receive the Dell Foundation’s grant, parents of eligible children simply need to open an account.
While the new accounts are easy to establish, they have fewer tax advantages than 529 plans or Roth IRAs. Withdrawals are not permitted until the child turns 18, after which the assets are rolled into an IRA and become taxable.
Dell remains optimistic that other philanthropists will join the cause, envisioning a powerful long-term impact. “What we hope is that every child sees a future worth saving for,” he said. “You think about the compounding effect of a program like this in 10, 20, 30 years on millions of children. That’s what gets us excited.”
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