Philanthropy boost: Michael and Susan Dell pledge $6.25bn for ‘Trump Accounts’ launch; major gift aims to spur families to sign up

Announced on GivingTuesday, they believe it is the largest single private commitment ever made to support US children.The contribution will operate through investment accounts administered by the US Department of the Treasury and managed by private firms.

The accounts — dubbed “Trump Accounts” in the legislation — are part of a programme passed into law on July 4 and scheduled to launch on July 4, 2026.“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, whose net worth is estimated at $148 billion, AP reported.Through their pledge, the Dells will deposit $250 into each qualifying child’s account.

Dell said they chose the launch date to coincide with the 250th anniversary of US 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.Under the new law, the Treasury will automatically deposit $1,000 for children born between Jan.

1, 2025 and Dec.

31, 2028, with all funds invested in a stock-market index fund.

Families of other children will need to contribute themselves, and the accumulated balance can be used at 18 to pay for education, housing or to start a business.The Dells hope their contribution will push families to claim the accounts and add even small deposits over time while also encouraging companies and philanthropists to participate.“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,” said venture capitalist Brad Gerstner, who supported the legislation and is founder of the Invest America Charitable Foundation, which is helping the Treasury launch the accounts.Gerstner said the initiative aims not only to give young people a financial start but also to ensure they share in the gains of the economy.

“Fundamentally, we need to include everybody in the upside of the American experiment.

Otherwise, it won’t last,” he said.AP noted that only 58% of US households held stocks or bonds in 2022, with the wealthiest 1% owning nearly half the value of all stocks, while the bottom 50% held about 1%.

In 2024, about 13% of US children and young people lived in poverty, according to the Annie E.

Casey Foundation, reflecting the lack of social supports such as paid parental leave.The Dells’ contribution will be directed to children living in ZIP codes with median family incomes of $150,000 or less.

While the Trump Accounts may help young adults with long-term saving, the initiative will not immediately reduce child poverty.

Cuts to Medicaid, food stamps and child-care benefits in the spending package are expected to diminish short-term support for low-income families.Ray Boshara, senior policy adviser with both the Aspen Institute and Washington University in St.

Louis, welcomed the multi-sector contribution model.

He said the concept resembles other landmark programmes that improved over time.

“The ACA, Social Security – they start off fairly flawed, but get much better and more progressive and inclusive over time,” he said.

“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 couple has reported giving $2.9 billion since 1999, with a strong focus on education.

Michael Dell said they had not initially expected to commit so much to the new accounts, but Susan Dell said the scale grew as they assessed the programme’s long-term potential.

“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,” she said.