On Dec. 2, Dell Technologies (NYSE:DELL | DELL Price Prediction) founder and CEO Michael Dell and his wife, Susan, announced a $6.25 billion donation to fund the new “Trump Accounts” for 25 million American children under age 10. These tax-advantaged investment accounts, created under President Trump’s 2025 tax legislation, aim to build long-term wealth by investing in stock market index funds. The federal government already plans to provide $1,000 grants for newborns through 2028, but the Dells’ gift covers older kids in lower-income zip codes with $250 each.
Announced on Giving Tuesday at the White House, the pledge marks one of the largest single charitable acts for U.S. children, targeting those born before 2025 to encourage family participation.
The Rise of Billionaire Backing for Trump’s Vision
Michael Dell’s donation is in step with a broader trend among tech moguls warming to Trump’s second term. Once critics of his policies, figures like Elon Musk and Mark Zuckerberg have warmed to the president, donated to Republican causes, and attended events at Mar-a-Lago.
Dell, with a net worth over $150 billion, framed the $6 billion gift as an investment in future prosperity, echoing Trump’s pitch for “real trust funds” for every child. Shares of Dell Technologies rose 3% after the announcement, suggesting a halo effect that the market approved of.
This move builds on the One Big Beautiful Bill Act, signed in July, which mandates Treasury-managed accounts accepting unlimited nonprofit contributions. The Dells partnered with Invest America, a nonprofit pushing for universal child savings.
Critics note the program won’t directly ease immediate poverty but could grow to significant sums — $250 invested today at 7% annual returns with no additional contributions could hit $850 by age 18.
Gates’ Global Focus
Microsoft (NASDAQ:MSFT) co-founder Bill Gates has a different agenda. His Gates Foundation — with $86 billion under management — has committed nearly all his $104 billion fortune to global health, education, and poverty alleviation by 2045. In 2025, Gates announced plans to double the foundation’s budget to $200 billion before it sunsets, prioritizing vaccines, HIV cures, and disease eradication.
Unlike Dell, Gates typically doesn’t involve himself in partisan giving, despite contributing $50 million to Kamala Harris’s 2024 presidential campaign through a dark-money group. His rationale was supposedly fear that Trump would cut family planning and global aid.
In a January 2025 Fortune interview, Gates expressed surprise at Silicon Valley’s rightward shift, calling it historically “left of center.” However, he subsequently met Trump in February to discuss Operation Warp Speed’s HIV applications, though he emphasized nonpartisan innovation over endorsements.
Gates’ domestic efforts often center on education and equity, such as the $1 billion he gave for U.S. teacher training in 2024. There has been no suggestion, though, that he plans to support the Trump Accounts, likely because he focuses on issues that have an international impact, as U.S. budget proposals are cutting foreign aid by billions.
Why Gates Might — or Might Not — Join In
But could Gates follow Dell? In theory, yes, but it seems unlikely. His foundation avoids U.S.-centric politics, viewing them as inefficient for the scale he envisions. Trump’s 2026 budget eyes $9.6 billion in new domestic spending but deep foreign cuts, clashing with Gates’ priorities like PEPFAR funding for AIDS relief. Gates has lobbied Republicans before — pushing Warp Speed in 2020, for example — but prefers to operatye behind the scenes rather than making splashy pledges.
That said, peer pressure from Dell and others might nudge him to donate. Trump publicly urged billionaire contributions at the White House event, and Gates values his bipartisan ties. If the Trump accounts prove effective, Gates might try funding similar global versions through his network.
Yet, his May pledge to give away 99% of his wealth pretty much locks in a trajectory that is removed from U.S. policy decisions. In 2024, for instance, Gates donated some $8.5 billion, with most of it going abroad.
Key Takeaway
As the Trump administration proposes steep budget cuts — potentially $31 billion in rescissions for 2025-2026 — billionaires like Dell can take up the slack. Programs targeted at low-income families, including those for food stamps and housing, face cuts due to fraud and abuse. Yet the cuts also hit many individuals and families who have been made dependent on them.
Philanthropists can step up with targeted aid to fill the gap, such as Dell’s donation, which builds assets for kids in median-income areas under $150,000.
Gates’ model seemingly prefers giving that has a scalable impact, like funding community health clinics or job training in cut-hit regions. Direct grants, scholarships, or endowments for nonprofits help essentials reach those impacted.
Ultimately, while policy is driving systemic change, billionaire interventions can provide immediate lifelines, offering a bridge amid shifting fiscal priorities. Gates might join the effort, but it looks unlikely today.
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