Billion-Dollar Boost for Child Savings: Dell Family Pledges $6.25 Billion to ‘Trump Accounts’
WASHINGTON (AP) – Michael and Susan Dell have committed $6.25 billion to encourage families to utilize newly established ”Trump Accounts,” investment vehicles designed to build wealth for America’s children. The unprecedented philanthropic commitment aims to seed accounts and incentivize contributions from businesses, governments, and individuals, though experts caution the program’s immediate impact on childhood poverty will be limited.
The “Trump Accounts,” formally known as child investment accounts, were included in a recent spending package and allow for contributions to grow over time. While the accounts won’t immediately alleviate existing financial hardship,proponents envision them as a long-term strategy for wealth building,notably for children from low-income families. The Dell’s donation, channeled through the Michael & Susan Dell Foundation, represents a significant down payment on the concept, with the couple increasing thier initial commitment over time.
“We’re thrilled to be spearheading this in the philanthropy sector and are so excited as we certainly know that more people are going to jump on board because really, we can’t think of a better idea and better way to help America’s children,” Susan Dell said.
The foundation has historically focused on education, reporting $2.9 billion in giving since 1999. The new initiative builds on that commitment, aiming to provide a financial foundation for future generations.
However, the benefits of the “Trump Accounts” are occurring alongside cuts to existing social safety nets. Reductions to Medicaid,food stamps,and child care programs included in the same spending package are expected to diminish support for children in low-income families.
Ray Boshara, senior policy advisor with the Aspen Institute and Washington University in st. Louis, expressed optimism about the potential of the accounts, noting that large-scale policies often evolve and improve over time.”The ACA, Social Security - they start off fairly flawed, but get much better and more progressive and inclusive over time. And that’s how we think about Trump Accounts. It’s a down payment on a big idea that deserves to be improved and there’s bipartisan interest in improving them.”