Dell family to put $250 in 25 million US children's accounts

Michael and Susan Dell announced Tuesday that they would deposit $250 in individual investment accounts for 25 million children, an amount totalling $6.25 billion. It is one of the largest philanthropic gifts ever to go directly to Americans.

- NICHOLAS KULISH

Michael Dell, the head of Dell Technologies, said that giving directly to children echoed his early business model of direct computer sales. NYT

The money expands the number of children who will receive seed money for the investment accounts, known as "Trump accounts." The federal government will give $1,000 to babies born between Jan 1, 2025, and Dec 31, 2028. The Dells' gift extends to children up to 10 years old, though it limits eligibility to those who live in a ZIP code where the median household income is below $150,000.

The federal government is expected to set up the accounts next summer, but many details of how they will work are still to be determined. There is no system in place yet for registering, and it is unclear where the accounts will reside.

Michael Dell, the chair and CEO of Dell Technologies, first made his fortune by selling personal computers directly to consumers rather than through retail outlets. He sees this gift in a similar light.

"When I started a company 41 years ago, we created the direct model," Mr Dell said. "This is sort of the direct model philanthropy."