NEW YORK (AP) — Billionaires Michael and Susan Dell have pledged $6.25 billion to provide 25 million American children 10 and under an incentive to claim the new investment accounts for children created as part of President Donald Trump’s tax and spending legislation.

The historic gift has little precedent, with few single charitable commitments in the past 25 years exceeding $1 billion.

Announced on GivingTuesday, the Dells said they believe it’s the largest single private commitment made to the nation’s children.

Its structure is also unusual. Essentially, it builds on the “Trump Accounts” program, through which the U.S. Department of the Treasury will deposit $1,000 into investment accounts it sets up for American children born between Jan. 1, 2025 and Dec. 31, 2028.

The Dells’ gift will use the “Trump Accounts” infrastructure to give $250 to each qualified child under 11.

“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 $148 billion, according to Forbes.

Though the “Trump Accounts” became law as part of the president’s signature legislation in July, the Dells say the accounts will not launch until July 4, 2026. Michael Dell said they wanted to mark the 250th anniversary of the country’s independence.

“We want these kids to know that not only do their families care, but their communities care, their government, their country cares about them,” said Susan Dell.

Under the new law, “Trump Accounts” are available to any American child under 18 with a Social Security number.

Account contributions must be invested in an index fund that tracks the overall stock market. 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 will put money into the accounts of children 10 and younger who live in ZIP codes with a median family income of $150,000 or less and who won’t get the $1,000 seed money from the Treasury.

Because federal law allows outside donors to target gifts by geography, the Dells said using ZIP codes was “was the clearest way to ensure the contribution reaches the greatest number of children who would benefit most.”

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.

Analysts say there is a political benefit for Trump and fellow Republicans. The accounts will become available in the midst of a midterm election, providing money to millions of voters — and a campaign talking point to GOP candidates — at a critical time, politically. The $1,000 deposits are slated to end just after the 2028 presidential election.

At the White House this week, Trump praised the Dells saying their gift was, “truly one of the most generous acts in the history of our country.”

Trump said many companies and many of his friends would also be donating, adding “I’ll be doing it, too.”

Brad Gerstner, a venture capitalist, who championed this legislation, said the accounts will give all children renewed hope in the American dream.

“It’s hard to give effective dollars away at scale, particularly to the country’s neediest kids in a way that you have confidence that those dollars are going to compound with the upside of the U.S. economy,” said Gerstner, who is also the founder of Invest America Charitable Foundation, which is supporting the Treasury in launching the accounts.

“Fundamentally, we need to include everybody in the upside of the American experiment. Otherwise, it won’t last. And so, at its core, we think it can re-energize people’s belief in free market, capitalist democracy,” Gerstner said of the accounts.

About 58 percent of households held stocks or bonds in 2022, according to the U.S. Securities and Exchange Commission, though the wealthiest 1 percent owned almost half the value of stocks in that same year and the bottom 50 percent owned about 1 percent of stocks.

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

While the funds in the Trump Accounts may help young adults whose families or employers can contribute to them over time, analysts say they won’t immediately help to diminish childhood poverty.

Ray Boshara, senior policy adviser with both the Aspen Institute and Washington University in St. Louis, however, said he is excited about the idea that the Trump Accounts will be able to receive contributions from the business, philanthropic and governmental sectors.

“We would like to see this idea continue and get better over time, just like any big policy,’ said Boshara, who co-edited the book “The Future of Building Wealth.” “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.”