In a historic act of philanthropy that aligns with a major federal policy proposal, the Michael & Susan Dell Foundation has announced a monumental $6.25 billion pledge. This transformative gift is dedicated to funding long-term investment accounts for millions of American children, specifically aiming to reach at least 25 million young beneficiaries.

The initiative directly supports the framework of so-called “Trump Accounts,” a cornerstone of the proposed “One Big Beautiful Bill Act” unveiled this past summer and slated for a 2026 launch.

While the federal program, as outlined by the Treasury Department, intends to provide a $1,000 seed deposit for every U.S. citizen child born within a specific four-year window starting in 2025, the Dell Foundation’s unprecedented commitment ensures a far broader reach.

Their billions will specifically fund $250 deposits for children aged ten and under who were born prior to the government’s eligibility cut-off, effectively bridging a generational gap. This strategic philanthropy leverages private capital to expand the policy’s impact exponentially beyond its original federal scope.

The scale of this donation marks a defining moment in educational and economic philanthropy. To date, the Michael & Susan Dell Foundation has contributed $2.9 billion to various causes, making this single pledge more than double their lifetime giving.

Michael Dell, the founder and CEO of Dell Technologies, ranks as the world’s 11th-wealthiest person with an estimated net worth of $148 billion, according to the Bloomberg Billionaires Index. This move signals a powerful collaboration between visionary private donors and a sweeping public policy initiative, aiming to create a foundational financial asset for an entire generation.

The Council of Economic Advisers reports:

The projected balance of a Trump Account for a child born in 2026 is calculated using the specified Trump Account contribution limits from 2026 through 2043 (until the child turns 18) and then the IRA contribution limits from 2044 through 2054 (until age 28). Estimates are provided under three distinct contribution scenarios.

The first scenario assumes the Annual Maximum Contribution. This involves deposits of $5,000 for the initial years of 2026 and 2027, followed by that $5,000 base adjusted upward for 2% annual inflation from 2028 through 2043. Upon transitioning to IRA rules at age 18 in 2044, the annual maximum is projected to be $7,000 adjusted for 18 years of prior 2% inflation. This inflated IRA maximum then serves as the base for 2044, with a further 2% annual inflation adjustment applied each year through 2054.

The second scenario models Half of the Annual Maximum Contribution. It follows the same structure, beginning with $2,500 for 2026-2027, applying a 2% annual inflation adjustment to that base from 2028-2043, and then using half of the projected IRA maximum ($3,500 adjusted for 18 years of inflation) in 2044, with subsequent 2% annual increases through 2054.

The third scenario assumes No Contribution beyond the initial government seed money of $1,000. For each of these contribution paths, three potential future investment return assumptions—low, medium, and high—are applied.

Under the medium-returns assumption, the maximum annual contribution scenario yields an estimated balance of $303,800 by age 18, growing to $1,091,900 by age 28. If contributions are half of the maximum, the balance is projected to be $154,800 at 18 and $555,000 at 28. Even with no annual contributions after the seed money, the account is still projected to reach $5,800 by age 18 and $18,100 by age 28.

The outcomes vary considerably with different return assumptions. Even under the low-returns scenario, the maximum contribution path results in a substantial balance of $187,400 at age 18 and $772,200 at age 28. Conversely, under the high-returns scenario, these figures increase very significantly to $730,400 by age 18 and $1,904,300 by age 28.