The historic gift has little precedent, with few single charitable commitments in the past 25 years exceeding $1 billion, much less multiple billions. Announced on GivingTuesday, the Dells believe it’s the largest single private commitment made to U.S. children.

It is also unusual in that it will operate through investment accounts set up by the U.S. Department of the Treasury that will be managed by private companies. Dubbed “Trump Accounts,” the program has not yet launched but was passed into law on July 4 as part of the president’s signature legislation.

“We believe that if every child can see a future worth saving for, this program will build something far greater than an account. It will build hope and opportunity and prosperity for generations to come,” said Michael Dell, the founder and CEO of Dell Technologies whose estimated net worth is $148 billion, according to Forbes.

Through their gift, the Dells will deposit $250 into each qualified child’s investment account, which they said the Treasury plans to launch on July 4, 2026. Dell said they wanted to mark the 250th anniversary of U.S. independence.

“We want these kids to know that not only do their families care, but their communities care, their government, their country cares about them,” said Susan Dell. “And we’re all rooting for them to have a wonderful future, a bright future, and that that’s available to them.”

Under the new law, the Treasury will deposit $1,000 into the accounts of children born between Jan. 1, 2025 and Dec. 31, 2028 and the funds must be invested in an index fund, which tracks the overall stock market. But it will be up to the families of other children to put money into the accounts. When the children turn 18, they can withdraw the funds to put toward their education, to buy a home or to start a business.

The Dells hope their gift will encourage families to claim the accounts and deposit more money into it, even small amounts, so it will grow over time along with the stock market. They also hope companies and other philanthropists will donate to these accounts.

“It’s hard to give effective dollars away at scale, particularly to the country’s neediest kids in a way that you have confidence that those dollars are going to compound with the upside of the U.S. economy,” Brad Gerstner, a venture capitalist, who advocated for the passage of this legislation. “And so, this is a unique platform that’s being created by the government that I think can unlock major giving.”

Gerstner is also the founder of Invest America Charitable Foundation, which is supporting the Treasury in launching the accounts. He said the goal of the accounts is to give young people funds to jump start their lives but also to help them benefit from the growth of the U.S. economy through investing in stocks.

“Fundamentally, we need to include everybody in the upside of the American experiment. Otherwise, it won’t last. And so, at its core, we think it can re-energize people’s belief in free market, capitalist democracy,”″ Gerstner said of the accounts.

About 58% of U.S. households held stocks or bonds in 2022, according to the U.S. Securities and Exchange Commission, though the wealthiest 1% owned almost half the value of stocks in that same year and the bottom 50% owned about 1% of stocks.

In 2024, about 13% of children and young people in the U.S. lived in poverty, according to the Annie E. Casey Foundation, and experts link the high child poverty rates to the lack of social supports for new parents, like paid parental leave.

The Dells will put money into the accounts of children who live in ZIP codes with a median family income of $150,000 or less.

While the funds in the Trump Accounts may help young adults whose families or employers can contribute to them over time, they won’t immediately help to diminish childhood poverty. Cuts to Medicaid, food stamps and child care that were also included in the spending package are likely to reduce the support children from low-income families receive.

Ray Boshara, senior policy advisor with both the Aspen Institute and Washington University in St. Louis, said he is excited about the idea that the Trump Accounts will be able to receive contributions from the business, philanthropic and governmental sectors.

“We would like to see this idea continue and get better over time, just like any big policy,’ said Boshara, who co-edited the book “The Future of Building Wealth.” “The ACA, Social Security – they start off fairly flawed, but get much better and more progressive and inclusive over time. And that’s how we think about Trump Accounts. It’s a down payment on a big idea that deserves to be improved and there’s bipartisan interest in improving them.”

Through the Michael & Susan Dell Foundation, the Dell’s have reported giving $2.9 billion since 1999, with a large focus on education.

Michael Dell said they had not initially envisioned committing so much to boost the child investment accounts, but Susan Dell said over time, they decided to increase the size of their commitment.

“We’re thrilled to be spearheading this in the philanthropy sector and are so excited because we know that more people are going to jump on board because really, we can’t think of a better idea and better way to help America’s children,” she said.

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