Michael and Susan Dell on Tuesday announced that they are donating $6.25 billion to fund investment accounts for at least 25 million American children.

The enormous pledge will go toward helping fund “Trump Accounts,” a new initiative that offers investment accounts for children. The “Trump Accounts” were established as part of President Donald Trump’s “One Big Beautiful Bill Act” and are set to launch in 2026.

The Treasury Department is set to deposit $1,000 into the account of every eligible US citizen child born from January 2025 through December 31, 2028.

The Dells’ charitable gift will go toward children ages 10 and under who were born before the cut-off for the Treasury’s funding. The Dells’ donation will fund $250 deposits for investment accounts for at least 25 million children, resulting in a total gift of $6.25 billion.

It’s one of the largest private investments in American children in history, according to Invest America, a nonprofit organization helping spearhead the initiative to develop these accounts.

“We feel super excited to be able to make a difference in millions of children’s futures and create opportunity, hope and prosperity for them,” Michael Dell, CEO at Dell Technologies, told CNN in a phone interview.

“If you think about the power of compounding and what these accounts are likely to become over 10, 20, 30 years, that’s super significant,” Dell said.

Dell, who founded his tech company in 1984, is the world’s 11th richest individual, with a net worth of $148 billion, according to the Bloomberg Billionaires Index.

The Dells had donated $2.9 billion to charitable causes to date, according to the Michael & Susan Dell Foundation, making this $6.25 billion pledge more than double the entirety of their previous giving.

“When we heard about this idea, we were thrilled, because this allows us to reach such a huge number of children with this program,” Susan Dell told CNN in a phone interview. “Investing in children and their future is really investing in all of our futures. Children are the future. So we couldn’t be more excited about this program.”

At a White House event with the Dells on Tuesday afternoon, Trump said the accounts will allow “family members, employers, corporations [and] generous donors to contribute money that will be invested and grow over the course of a child’s life to be used for their benefit after they turn 18.”

What are “Trump Accounts” and how can I open one for my child?

“Trump Accounts” are tax-deferred investment accounts intended to help American children grow their savings.

Parents and guardians will be able to file a new form with the IRS (Form 4547) to establish a “Trump Account” for their child. Starting in May 2026, the Treasury Department will follow up with those who filed to complete the process of opening an account.

Sign-ups for accounts will also be available online starting in mid-2026. The site is expected to be updated with additional information on how to set up accounts, according to a new “Trump Accounts” profile on X.

Private contributions will first be able to be made on July 4, 2026. The accounts will allow for private contributions of up to $5,000 a year. Employers can contribute up to $2,500 of that amount.

The accounts will be invested in mutual funds or index funds tracking the S&P 500 or other benchmark indexes.

Any child aged 18 or under with a Social Security number will be eligible to have an account. The Treasury Department will only fund $1,000 for children born between January 1, 2025 and December 31, 2028.

The Dells’ gift will fund $250 for children ages 10 and under who were born before January 2025, expanding the number of children receiving funding to start an account. If there are additional funds remaining after initial sign-ups, children older than 10 may be eligible. The Dells’ funds will be distributed to individual accounts by the Treasury Department.

When would children be able to access the funds?

The investment account will be locked for withdrawals until the child turns 18.

At that point, the account will be treated as a traditional individual retirement account.

Funds can be used toward expenses including education, down payments on a first home, or money to start a business, subject to general withdrawal rules associated with IRAs.

While parents may welcome the prospect of “free money,” as a savings vehicle, the “Trump Accounts” add yet more complexity to an already complex web of savings accounts options for families — each with their own eligibility and withdrawal rules, contribution limits and tax treatment.

“For parents looking to set up an account for their children’s education, a 529 account offers more flexibility and tax benefits,” the Tax Foundation said in a statement. “If the federal government really wanted to make saving more accessible for taxpayers, it would replace the complicated mess of savings accounts currently available with universal savings accounts.”

Why are the Dells donating?

The backstory begins with Brad Gerstner, CEO of Altimeter Capital, and a friend of the Dells.

In 2021, Gerstner founded Invest America, the nonprofit helping advocate for these savings accounts.

Michael Dell said after learning about the idea from Gerstner, he was very excited about the prospect of it and had talked to the Biden administration, but nothing came to fruition until this year when he spoke to Trump.

“I had an opportunity to explain it to the president earlier this year,” Dell told CNN.

Dell appeared at the White House in June alongside other business executives when Trump promoted the idea of the “Trump Accounts.”

“We believe that the smartest investment we can make is the one that we make in children,” Dell told CNN. “We’ve also talked with a number of other philanthropists, and we feel confident there’ll be other significant gifts that get announced.”

Dell said the $250 deposits will be focused on children in zip codes where the median income is less than $150,000. The gift is expected to reach children across 75% of US zip codes, according to Invest America.

“What we really hope is that children will see that there’s a future worth saving for, and if every child sees that there is a future worth saving for, then we’ll have been a part of helping build that hope and opportunity and prosperity for generations to come,” Susan Dell told CNN. (CNN)

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