Dell Technologies Inc. (DELL) founder Michael Dell and his wife Susan are making one of the largest private donations directly benefiting Americans in recent memory. The couple has pledged $6.25 billion to help seed new government-backed Trump-branded investment accounts for children.
The donation breaks down to $250 per child and will reach up to 25 million children aged 10 and under who were born before January 1, 2025, according to the BBC. Eligibility is limited to kids living in areas where the median income falls under $150,000.
President Donald Trump wasn't shy about his enthusiasm for the gift. He took to social media Tuesday morning to celebrate the news, writing "Two great people. I love Dell!!" in all capital letters.
The Dells see this as more than just a generous gesture. They believe the gift will expand savings opportunities and provide a crucial financial advantage to millions of American families. The donation is expected to reach roughly 80% of eligible children in the United States.
How the Trump Accounts Work
Congress authorized these new accounts earlier this year with the goal of encouraging families to save for their children's retirement. Yes, retirement planning for toddlers is now officially a thing.
Beyond the Dell family's contribution, the government will provide $1,000 to babies born between 2025 and 2028. The accounts are designed to launch in July, and all funds must be invested in a low-cost index fund that mirrors the broader stock market.
Parents and guardians can open an account for any child under 18 using a form published by the Treasury Department. Annual contributions are capped at $5,000 (adjusted for inflation) and can come from parents, employers, or charitable groups.
The White House Council of Economic Advisers has done the math: assuming a 10.3% annual return, an initial $1,000 could grow to over $5,800 in 18 years. The Dells' $250 contribution could become approximately $1,600 over the same period.
Not everyone is cheering, though. Critics argue the accounts will primarily benefit wealthier families who already have disposable income to contribute, while offering less flexibility than existing savings options. The debate over who really benefits from these accounts is just getting started.
