President Trump on Tuesday announced that Michael and Susan Dell will donate $6.25 billion to fund so-called Trump Accounts, one of the largest philanthropic donations ever to go directly to Americans.
Michael Dell, the founder, chairman and CEO of Dell Technologies, and his wife, Susan Dell, will give 25 million American children $250 each to jump-start an investment account for their futures.
The Trump Accounts were created as part of Mr. Trump’s One Big Beautiful Bill law. Under the program, the government will automatically seed an account with $1,000 for each child born between 2025 and 2028.
Mr. Trump said the Dells’ donation is “truly one of the most generous acts in the history of our country.”
“This will give millions of children and middle-class families a stake in American prosperity,” he said. “It gives them a shot at the American dream.”
Mrs. Dell said when children see they have a future that’s “worth saving for,” it builds hope and prosperity for the generations to come.
Mr. Dell called on other entrepreneurs to follow their lead and also donate to the Trump accounts.
The donation extends to children up to 10 years old, though it limits eligibility to those who live in a ZIP code where the median household income is below $150,000. Their gift goes directly to the government.
The Trump administration is expected to set up the accounts next summer, though many details still need to be worked out. There is no system in place to register; it is unclear where the accounts will be held.
It is also unclear how this will be funded. The federal government will contribute $1,000 to each account. That will cost taxpayers roughly $3.6 billion a year, based on the 3.6 million U.S. births in 2024, which was a 1% increase from 2023, according to data by the Centers for Disease Control and Prevention.
Mr. Trump has disputed this, however, saying the money will come from initiatives in One Big Beautiful Bill, including a 3.5% remittance tax on money sent abroad.
There are no income requirements for the one-time $1,000 federal contribution, and everyone is eligible for the money as long as the child is a U.S. citizen.
Trump Accounts are meant to encourage early savings opportunities with the potential for annual employer contributions as well as donations from state and local governments and nonprofit organizations.
Account balances will be invested in a low-cost index fund such as a mutual fund or an exchange-traded fund. The asset management industry has raised concerns about language in the legislation that could limit certain mutual funds. They have asked the Treasury to broaden its interpretation.
