A parent holding a baby's feet.

By Chris Spiker From Daily Voice

The founder of Dell Technologies said he's donating billions of dollars toward investment accounts for about 25 million children.

CEO Michael Dell and his wife Susan announced the $6.25 billion pledge on Tuesday, Dec. 2. The funds will help support millions of kids 10 years old and younger in communities where the median household income is no greater than $150,000.

Invest America is partnering with the Dells, and the nonprofit advocacy group said this will be the largest donation ever dedicated to US children. The bipartisan initiative gives every child with a Social Security number a "tax-advantaged investment account from birth," which their family can activate and contribute to over time.

The pledge follows a new federal government program that gives a $1,000 grant to US citizens born from the beginning of 2025 through 2028 to seed so-called "Trump accounts." Parents will be able to open and contribute to the accounts starting on Saturday, July 4, 2026, with deposits growing tax-free until the child turns 18.

The Dells said they want to expand access to kids born before the federal window.

"We've seen what happens when a child gets even a small financial head start," Michael Dell said in a video announcement. "Their world expands." 

"The real power of these accounts is that anyone can contribute," Susan Dell added. "Parents, relatives, friends, everyone can help shape a child's future."

The Michael & Susan Dell Foundation will automatically deposit $250 into the accounts of most children born from 2016 through 2024 once families open an account. According to Charles Schwab, contributions can reach $5,000 per year, and employer deposits may go up to $2,500.

Money must be invested in low-cost diversified index funds. Parents cannot withdraw from the funds before their child turns 18.

It's unclear how parents can open their accounts, The New York Times reported. The Investment Company Institute, which is a trade organization for brokerage firms, is encouraging the Treasury Department to allow competition, rather than putting one firm in charge of where people can open accounts.

President Donald Trump and tech mogul Michael Dell at the White House on June 9, 2025.

President Donald Trump and tech mogul Michael Dell at the White House on June 9, 2025.

Wikimedia Commons - The White House

"Trump accounts" were a late addition to the spending law previously called the "One Big Beautiful Bill" after Gerstner lobbied for their inclusion. Lawmakers in both parties have proposed similar plans for years as a way to reduce wealth inequality.

Rep. Don Beyer, a Virginia Democrat and tax writer who created another proposal, said that the Trump version will be predominantly used by wealthy families and doesn't help low-income households enough.

"The so-called 'Trump accounts' are a missed opportunity that focused on Donald Trump's vanity and giving Republicans a hollow talking point rather than truly helping young people," Beyer told Politico. "I am willing to work with members of both parties to make this policy workable, but doing so would require significant changes."

Hedge fund manager Brad Gerstner, who founded Invest America, told CNBC that the $1,250 from the federal grants and Dell's donation alone won't be enough for the "Trump accounts" to grow at a significant rate. Gerstner added that the accounts encourage parents to invest their own money and allow kids to benefit from the stock market at an early age.

While the Dells' foundation hasn't created a tool yet to see who qualifies for the program, you can enter your ZIP code at censusreporter.org to find out your community's most recent median income data.