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Michael Dell pledges $6.25B to seed ‘Trump Accounts’ for 25M kids

A major philanthropic push by Michael and Susan Dell is set to widen financial access for millions of young Americans as the couple commits $6.25 billion to expand the reach of “Trump Accounts”.

The donation will provide 25 million children with $250 each to start an investment account, extending a programme that was originally designed for newborns between 2025 and 2028.

The move gives the initiative an entirely new scale by adding support for children up to age 10.

Expansion into millions of new households

The gift will be transferred to the US Treasury Department and used to open accounts for children who did not qualify for the government’s original seed funding.

Under the One Big Beautiful Bill Act, the government set aside a $1,000 contribution for children born during a fixed four-year window.

The Dell contribution targets families in areas where the median household income is below $150,000 and is expected to reach around 80% of US children within that age group.

Trump accounts will launch on July 4, 2026, and parents will be able to add up to $5,000 a year.

Employers may contribute up to $2,500 annually without any effect on workers’ taxable income.

Additional gifts from philanthropists or local governments do not count toward these limits.

The money will be invested in low-cost index funds, and children will be able to access the account at age 18 for education, a housing deposit or early business costs.

Taxes will apply to gains when money is withdrawn.

Strong backing from business leaders

The expansion comes after Michael Dell, with an estimated fortune of $148 billion, became one of the most prominent private supporters of the scheme.

In June, he joined an Invest in America roundtable in the US with executives from firms including Goldman Sachs and Uber.

At the event, President Donald Trump highlighted the role Dell played in shaping the programme.

Dell also confirmed that Dell Technologies would match the government’s $1,000 contribution for employees’ children.

Support for Trump accounts has been rising across parts of the business community, boosted by the work of venture capitalist Brad Gerstner.

He launched the Invest America nonprofit in 2023 to promote practical ways to narrow the wealth gap and build financial literacy.

The nonprofit has presented the accounts as a long term platform for coordinated contributions from government, companies and families.

Philanthropy shaped by early experience

Dell’s interest in early investment support is linked to his own beginnings. His early entrepreneurial story is built around the $1,000 he used in 1984 to start Dell Technologies from his university dorm room.

The company has since grown to a market value close to $90 billion. Dell and his wife also own almost 40% of the business and hold a large position in Broadcom, which rose sharply after acquiring VMWare in 2023.

The couple’s charitable giving has accelerated rapidly. Their foundation increased contributions from an average of about $57 million a year between 2020 and 2022 to nearly $3.6 billion in 2023, including $1.7 billion in Broadcom stock.

The post Michael Dell pledges $6.25B to seed ‘Trump Accounts’ for 25M kids appeared first on Invezz

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