Michael Dell, the founder of Dell Technologies Inc., and his wife, Susan, will donate $6.25 billion to help fund so-called “Trump accounts,” an initiative created earlier this year under legislation backed by President Donald Trump and Republican lawmakers. The contribution, reported by Bloomberg, represents one of the largest philanthropic gifts in U.S. history and signals a notable shift in how some of the nation’s wealthiest individuals are choosing to distribute their fortunes.
The program will create roughly 25 million investment accounts for children aged 10 and under, each seeded with $250 and administered by the U.S. Treasury Department. The funds will be invested on behalf of the children, giving young Americans a financial stake intended to grow over time. Dell said in an interview with Bloomberg TV that he expects other philanthropists to join the effort and sees the donation as “catalytic,” encouraging further private support.
The initiative marks a departure from traditional philanthropy, historically dominated by large foundations funding universities, medical research, museums and global health programs. Instead of giving to nonprofits, the Dells are opting to send money directly to individuals — a model some experts say reflects growing skepticism about conventional charitable institutions. “It reflects a lack of enthusiasm for traditional philanthropy,” Urban Institute researcher Benjamin Soskis told Bloomberg, noting that the move bypasses the nonprofit sector altogether.
The political climate has also influenced how wealthy donors give. As major foundations and universities face increasing criticism from conservatives, several prominent billionaires have gravitated toward Trump’s agenda. Trump praised Dell’s donation as “one of the most generous acts in the history of our country,” saying the accounts would give middle-class families “a stake in American prosperity.”
The Dells’ contribution targets children who are too old to qualify for the program’s government-funded tranche, established by the One Big Beautiful Bill Act, which allocates $1,000 for children born between 2025 and 2028. Their donation will be distributed nationwide, with priority given to ZIP codes where median household income falls below $150,000.
Some experts caution that the financial impact per child will be limited. Patrick Rooney of Indiana University’s Lilly Family School of Philanthropy estimated that a 10-year-old receiving $250 today might accumulate only around $536 by early adulthood, assuming a 10% annual return — far short of what’s needed for major expenses like college tuition or a first home.
Michael Dell, whose net worth stands at roughly $148 billion according to the Bloomberg Billionaires Index, is contributing more than twice the total amount distributed by his family foundation since its creation. Despite the scale of the donation, it amounts to only a fraction of the wealth accumulated by America’s richest families, whose holdings have grown dramatically in recent years while philanthropic giving has remained relatively flat as a share of income.
Supporters of the program argue that direct giving can help families build wealth and expand economic opportunities. Others contend that government-led solutions would be more effective, warning that philanthropic commitments can fluctuate. “Philanthropy can be fickle,” New School economist Darrick Hamilton said in an interview with Bloomberg. “At the end of the day, it’s government’s responsibility.”
