Billionaires Michael and Susan Dell announced today that they have pledged $6.25 billion to establish investment accounts for approximately 25 million American children.
According to Invest America, a nonprofit advocacy group partnered with the Dells, the couple’s donation will be the largest ever dedicated to American children.
It will give 25 million American children under 10 an incentive to open the new investment accounts, created as part of President Donald Trump’s tax and spending law.
According to the White House, Trump Accounts for newborns will be seeded with a one-time government contribution of $1,000. The accounts will track a stock index and allow for additional private contributions of up to $5,000 per year. “This will afford a generation of children the chance to experience the miracle of compounded growth and set them on a course for prosperity from the very beginning.”
Michael Dell announced in a press release on the White House website that, “We see … the establishment of these Trump Accounts as a simple yet powerful way to transform lives. Decades of research has shown that giving children a financial head start profoundly impacts their long-term success. With these accounts, children will be much more likely to graduate from college, to start a business, to buy a home, and achieve lifelong financial stability.”
Speaker Mike Johnson said, “If you have a 401(k), you understand the power of investing early for the future. Trump Accounts take that same principle and they apply it from the very beginning of Americans’ lives … It’s a bold, transformative policy that gives every eligible American child a financial head start from day one … Trump Accounts are all about setting up the next generation for success.”
The Dells have agreed to allocate $250 to seed Trump accounts for children aged 10 or under who were born before January 1, 2025. As reported by Invest America, these pledged funds aim to support 25 million children in ZIP codes with median incomes of $150,000 or less. Withdrawals are not permitted until the child turns 18, at which point the assets are transferred into an IRA and are subject to taxation upon withdrawal.
“We want to help the children that weren’t part of the government program,” Dell said in an interview.
By CEO NA Editorial Staff
