Dell family donating $6 billion to 'Trump accounts' of 25 million U.S. children

Dell Technologies CEO Michael Dell and his wife Susan Dell announced on Tuesday that they will donate $6.25 billion to the investment accounts of 25 million U.S. children aged 10 and under.

The funds will be directed to Trump-branded investment accounts, authorised by Congress earlier this year, aimed at encouraging families to save for retirement. Each child will receive $250, and babies born between 2026 and 2028 will also be eligible for a $1,000 government contribution.

The Dells said the donation targets children born before 1 January 2025 who live in areas with a median income below $150,000. They expect the gift to reach almost 80% of children in this age group, making it one of the largest private donations directly benefiting Americans.

Michael Dell highlighted the impact of a small financial head start, “We’ve seen what happens when a child gets even a small financial headstart — their world expands,” he said in a video announcement.

He also encouraged other philanthropists and employers to make similar contributions.

Trump-branded accounts must be invested in an index fund reflecting the wider stock market. Parents can contribute up to $5,000 in after-tax funds, with employers, charitable organisations, and others also able to donate. The account converts into a retirement account when the child turns 18, growing tax-free, although withdrawals before age 59½ may be subject to taxes and penalties.

The White House Council of Economic Advisers estimates that a $1,000 initial deposit could grow to more than $5,800 in 18 years at a 10.3% rate of return. While some critics argue that the accounts primarily benefit wealthier families and add complexity to the U.S. savings system, supporters hail the scheme as a major step to expand financial literacy and security for children.

President Donald Trump praised the initiative on social media, calling the Dells “two great people.”

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