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Billionaires Michael and Susan Dell pledged $6.25bn Tuesday to provide 25 million American children under 10 an incentive to claim the new investment accounts for children created as part of Donald Trump’s tax and spending legislation.

The historic gift has little precedent, with few single charitable commitments in the past 25 years exceeding $1bn, much less multiple billions. Announced on GivingTuesday, the Dells believe it’s the largest single private commitment made to US children.

It is also unusual in that it will operate through investment accounts set up by the US Department of the Treasury that will be managed by private companies. Dubbed “Trump Accounts,” the program has not yet launched but was passed into law on 4 July as part of the president’s signature legislation.

“We believe that if every child can see a future worth saving for, this program will build something far greater than an account. It will build hope and opportunity and prosperity for generations to come,” said Michael Dell, the founder and CEO of Dell Technologies whose estimated net worth is $148bn, according to Forbes.

Through their gift, the Dells will deposit $250 into each qualified child’s investment account, which they said the treasury plans to launch on 4 July 2026. Dell said they wanted to mark the 250th anniversary of US independence.

Under the new law, the treasury will deposit $1,000 into the accounts of children born between 1 January 2025 and 31 December 2028 and the funds must be invested in an index fund, which tracks the overall stock market.

But it will be up to the families of other children to put money into the accounts. When the children turn 18, they can withdraw the funds to put toward their education, to buy a home or to start a business.

The Dells hope their gift will encourage families to claim the accounts and deposit more money into it, even small amounts, so it will grow over time along with the stock market. They also hope companies and other philanthropists will donate to these accounts.

In 2024, about 13% of children and young people in the US lived in poverty, according to the Annie E Casey Foundation, and experts link the high child poverty rates to the lack of social supports for new parents, like paid parental leave.

The Dells will put money into the accounts of children who live in zip codes with a median family income of $150,000 or less.

While the funds in the Trump Accounts may help young adults whose families or employers can contribute to them over time, they won’t immediately help to diminish childhood poverty. Cuts to Medicaid, food stamps and child care that were also included in the spending package are likely to reduce the support children from low-income families receive.

Michael Dell said they had not initially envisioned committing so much to boost the child investment accounts, but Susan Dell said over time, they decided to increase the size of their commitment.

“We’re thrilled to be spearheading this in the philanthropy sector and are so excited because we 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,” she said.