Investment Funds

Michael Dell – the founder and CEO of Dell Technologies – and his wife, Susan, announced they would donate $6.25B to fund investment accounts for 25M American children.

Context

Congress created tax-deferred investment accounts for children as part of Trump's "Big Beautiful Bill," which passed in July. The accounts, branded as "Trump Accounts," allow the Treasury Department to contribute $1,000 to children born between January 1, 2025, and December 31, 2028, who have a Social Security number. Parents, relatives, employers, and charitable organizations can contribute up to $5,000 annually to the accounts, which must be invested in index funds tracking US stocks. Children can access the money at age 18, when the accounts convert to retirement accounts.

Donation

The Dells announced on Tuesday that they would donate $250 per child for 25M American children for a total of $6.25B. Their investment will extend the accounts to children who were born before 2025 and do not qualify for the government's $1,000 contribution.