Michael & Susan Dell Donate $6.25B for Kids’ Savings Accounts

Michael and Susan Dell announced Tuesday that they have pledged $6.25 billion to open investment accounts for approximately 25 million American children.

sarah

Dec 2, 2025 - 20:08

Michael & Susan Dell Donate $6.25B for Kids’ Savings Accounts

Michael and Susan Dell announced Tuesday that they have pledged $6.25 billion to open investment accounts for approximately 25 million American children.

According to Invest America, a non-profit advocacy group partnered with the Dells, the couple's donation will be the largest ever for American children.

"It's designed to make families feel supported from the start and encourage children to continue saving as they grow up," Michael Dell, founder and CEO of Dell Technologies, said in an interview. "We know that when children have these types of accounts, they are more likely to graduate from high school and college, buy a home, start a business, and are less likely to go to jail."

The Dells' pledge aligns with a new federal government program that allows parents to open tax-advantaged investment accounts for children under 18 who have Social Security numbers. Under the federal program, U.S. citizens born between the beginning of 2025 and 2028 will receive a $1,000 federal grant to seed these so-called Trump Accounts. Parents will be able to open and contribute to these accounts starting July 4, 2026; IRS guidance has not yet been released.

Dell has pledged to deposit $250 into Trump Accounts for children 10 years old or younger born before January 1, 2025. According to Invest America, the funds will cover 25 million children 10 years old and younger living in ZIP codes with a median income of $150,000 or less.

"We want to help children who weren't part of the government program," Dale said. Dale said he became interested in starting an investment account for children when he heard the idea from hedge fund manager Brad Gerstner around 2021. Gerstner, CEO of Altimeter Capital, later founded Invest America, which advocated for the program's inclusion in the One Big Beautiful Bill Act.

Trump accounts can only be used to invest in low-cost diversified funds that track U.S. stock indexes. Gerstner said these accounts and grants give American children the opportunity to benefit from the growth of the U.S. stock market at an early age.

Gerstner said that turning the accounts into a substantial sum would require more than the $250 or $1,000 federal grants from the Dells. However, Gerstner said the seed money encourages parents to add their own funds.

He further said that the law makes it much easier for corporations and philanthropists to make large charitable contributions. Dell Technologies has invested in the U.S. The Treasury has promised to match $1,000 grants, which are deposited into the accounts of employees' new children.

To automatically receive grants from the Michael & Susan Dell Foundation, parents simply need to open a Trump account.

"Without a program like this, it would not be practical, or perhaps even impossible, to impact so many children in this way," Dell said.

There are few examples of the Dales' promise. The foundation of shoe billionaire Harold Alfond, who died in 2007, provides a $500 educational grant to every child born in Maine.

Although Trump Accounts are easy to seed, they lack some of the tax benefits of other accounts like 529 accounts or Roth IRAs. Withdrawals are not permitted until the child turns 18, after which the assets are rolled over to an IRA and taxed upon withdrawal.

Dale said he has spoken with other prominent philanthropists and hopes others will also contribute to these investment accounts.

"We hope every child sees a future worth saving for," he said. "Think about the impact a program like this will have on millions of children over 10, 20, 30 years. That's what excites us."