Billionaires Michael and Susan Dell have pledged $6.25bn to provide 25 million American children under 10 with an incentive to claim new investment accounts created as part of Donald Trump's tax and spending legislation. Announced on GivingTuesday, the gift is believed to be the largest single private commitment made to US children.
The accounts, dubbed 'Trump accounts', were passed into law on 4 July and will be managed by private companies. The US Treasury plans to contribute $1,000 into each account for children born between 2025 and 2028. Funds must be invested in an index fund tracking the stock market.
Through their gift, the Dells will deposit $250 into each qualified child's account, targeting children aged 10 or under in zip codes with a median family income of $150,000 or less. The Treasury aims to launch the accounts on 4 July 2026, marking the 250th anniversary of US independence.
When children turn 18, they can withdraw funds for education, buying a home, or starting a business. The Dells hope their donation encourages families to claim and contribute to the accounts, allowing savings to grow with the stock market.
However, critics note that cuts to Medicaid, food stamps, and childcare included in the same spending package may reduce support for low-income families. Treasury Secretary Scott Bessent said the accounts give Americans 'a stake in the success of the United States'.
