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Michael and Susan Dell announced Tuesday a $6.25 billion commitment to establish investment accounts for 25 million American children, marking one of the largest philanthropic gifts ever made directly to individual Americans rather than through foundations or institutions.
The gift will deposit $250 into individual accounts for children up to age 10 who live in ZIP codes where median household income falls below $150,000. The initiative expands a new federal program that provides $1,000 seed investments to babies born between January 1, 2025, and December 31, 2028, in what are formally known as "Trump accounts."
The federal government plans to establish the account infrastructure next summer, though critical details about registration processes and account administration remain undetermined. No system currently exists for families to enroll, and officials have not yet designated where the accounts will be held.
Michael Dell, chairman and chief executive of Dell Technologies, framed the gift as an extension of the business model that built his fortune in the personal computer industry. "When I started a company 41 years ago, we created the direct model," he said. "This is sort of the direct model philanthropy."
The couple expressed hope that their commitment would inspire other wealthy donors, corporations, and government entities to contribute additional billions to the accounts. They positioned the approach as a template for philanthropists seeking streamlined giving methods without establishing foundations or conducting extensive vetting of recipient organizations.
The concept emerged from a 2021 dining table discussion between Brad Gerstner, chief executive of Altimeter Capital, and his children. Gerstner subsequently founded a nonprofit called Invest America to advocate for government-funded child investment accounts and contacted his friend Michael Dell shortly afterward. The Dells immediately embraced the proposal.
Gerstner pitched the idea to the Biden administration and lawmakers from both parties, but the initiative gained momentum only after Michael Dell spoke with President Trump this year. Senator Ted Cruz, Republican of Texas, introduced legislation to create the Invest America accounts, which were renamed Trump accounts in the final tax bill approved this year.
Both Dell and Gerstner emphasized the bipartisan nature of child savings accounts. "If you look at what we're doing, I don't think this is in any way a partisan activity," Dell said. "It's certainly not intended to be."
However, if the program succeeds, it will elevate an initiative bearing Trump's name, creating a lasting association with his administration.
The commitment represents a significant shift in the Dells' philanthropic profile. While they have maintained a relatively low public presence compared to figures like Bill Gates, Melinda French Gates, and MacKenzie Scott, Susan Dell said the couple has donated $3 billion over 26 years, primarily to children's causes. Tuesday's announcement would place them among the nation's most generous donors.
"We've always made our focus to getting the support as close to families as possible, and Invest America continues that work," Susan Dell said. "This is a slightly different way of doing this, but the opportunity now is to do something really major and really touch 25 million children that will really benefit from this in a huge way."
The $6.25 billion commitment ranks among the largest single philanthropic gifts ever recorded, though several donations have exceeded it in absolute dollars. Bill Gates contributed $20 billion to his foundation in 2022, while Warren Buffett has donated billions in Berkshire Hathaway stock annually since 2006 to various foundations. However, those gifts flow through institutional intermediaries over decades, whereas the Dell contribution goes directly to individual beneficiaries.
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