Tech billionaire Michael Dell and his wife Susan Dell have announced an unprecedented philanthropic initiative: a $6.25bn donation intended to provide $250 each to 25 million children across the United States. The contribution will be channelled through the newly created Trump-branded investment accounts, a savings programme established earlier this year through a congressional tax and spending bill.
The federal scheme was designed to encourage long-term saving by offering $1,000 deposits for all babies born between 2025 and 2028. The Dells said their additional gift aims to dramatically expand access by supporting children aged 10 and under, even those born before the programme begins.
“We’ve seen what happens when a child gets even a small financial head start – their world expands,” Michael Dell said in a video accompanying the announcement.
A Donation Directed at Millions of Families
Unlike the government’s automatic newborn benefit, the Dell initiative will target children aged 10 and below who live in communities where the median household income is under $150,000. According to the couple, this threshold means the gift will reach nearly 80% of all children in that age group nationwide.
The donation is one of the largest private financial transfers directly to American residents. Dell, whose wealth is estimated by Forbes at nearly $150bn, encouraged fellow philanthropists and employers to join the effort and broaden the savings boost.
President Donald Trump celebrated the announcement online, writing, “Two great people. I love Dell!!!”
How the Trump Savings Accounts Will Function
The donated funds will be placed into the new Trump Accounts, specialised investment vehicles mandated to hold an index fund that tracks the overall stock market. Although the accounts have been authorised, families cannot open them yet; federal officials say the system will launch next year.
Key features include:
- Parents may contribute up to $5,000 annually in after-tax deposits.
- Employers, charities and private donors may also make contributions.
- Funds grow tax-free while invested.
- At age 18, the account automatically converts into a retirement fund.
- Early withdrawals (before age 59½) may face taxes and penalties.
Federal estimates suggest that a $1,000 initial deposit could grow to more than $5,800 over 18 years at a projected 10.3% return.
Mixed Reactions and Policy Debate
The Trump Accounts have faced scepticism since their creation. Critics argue the accounts are more beneficial to higher-income households that already have money to save, while offering less flexibility than existing retirement plans.
The Tax Foundation described the scheme as “well intentioned” but said it risks adding to the complexity of the US savings landscape. It noted that the main value comes from the initial government and employer contributions, rather than new tax incentives.
Treasury Secretary Scott Bessent also drew criticism after suggesting the programme could serve as a step toward reducing reliance on Social Security, calling it a “backdoor to privatizing” the system — a remark that quickly drew pushback from Democrats.
