Bill Gates pledges his remaining fortune to the Gates Foundation, which will close in 20 years

SEATTLE (AP) — Bill Gates says he will donate 99% of his remaining tech fortune to the Gates Foundation, which will now close in 2045, earlier than previously planned. Today, that would be worth an estimated $107 billion.

The pledge is among the largest philanthropic gifts ever – outpacing the historic contributions of industrialists like John D. Rockefeller and Andrew Carnegie when adjusted for inflation. Only Berkshire Hathaway investor Warren Buffett's pledge to donate his fortune — currently estimated by Forbes at $160 billion — may be larger depending on stock market fluctuations.

Gates' donation will be delivered over time and allow the foundation to spend an additional $200 billion over the next 20 years. The foundation already has an endowment of $77 billion built from donations from Gates, Melinda French Gates and Buffett.

“It’s kind of thrilling to have that much to be able to put into these causes,” Gates said in an interview with The Associated Press.

His announcement Thursday signals both a promise of sustained support to those causes, particularly global health and education in the U.S., and an eventual end to the foundation’s immense worldwide influence. Gates says spending down his fortune will help save and improve many lives now, which will have positive ripple effects well beyond the foundation's closure. It also makes it more likely that his intentions are honored.

“I think 20 years is the right balance between giving as much as we can to make progress on these things and giving people a lot of notice that now this money will be gone,” Gates said.

The pledge is “a welcome bit of boldness,” at a time when optimism is in short supply said, Rhodri Davies, a philanthropy expert and author of the publication, “Public Good by Private Means.”

“This announcement seems like yet more evidence that norms in foundation philanthropy might be shifting” away from a default of operating in perpetuity, he said.

The Gates Foundation has long been peerless among foundations — attracting supporters and detractors but also numerous unfounded conspiracy theories.

In addition to the $100 billion it has spent since its founding 25 years ago, it has directed scientific research, helped develop new technologies, and nurtured long-term partnerships with countries and companies.

About 41% of the foundation’s money so far has come from Warren Buffett and the rest from the fortune Gates made at Microsoft.

Started by Bill Gates and Melinda French Gates in 2000, the foundation plays a significant role in shaping global health policy and has carved out a special niche by partnering with companies to drive down the cost of medical treatments so low- and middle-income countries could afford them.

“The foundation work has been way more impactful than I expected,” Gates said, calling it his second and final career.

The foundation’s influence on global health — from the World Health Organization to research agendas — is both a measure of its success and a magnet for criticism. For years, researchers have asked why a wealthy family should have so much sway over how the world improves people’s health and responds to crises.

Gates said, like any private citizen, he can choose how to spend the money he earns and has decided to do everything he can to reduce childhood deaths.

“Is that a bad thing? It’s not an important cause? People can criticize it,” he said, but the foundation will stick to its global health work.

The Associated Press receives financial support for news coverage in Africa from the Gates Foundation and for news coverage of women in the workforce and statehouses from Melinda French Gates’ organization, Pivotal Ventures.

The foundation’s most prized metric is the drop in childhood deaths from preventable causes by almost half between 2000 and 2020, according to United Nations figures. The foundation’s CEO Mark Suzman is careful to say they do not take credit for this accomplishment. But he believes they had a “catalytic role” — for example, in helping deliver vaccines to children through Gavi, the vaccine alliance they helped create.

The foundation still has numerous goals — eradicating polio, controlling other deadly diseases, like malaria, and reducing malnutrition, which makes children more vulnerable to other illnesses.

Gates hopes that by spending to address these issues now, wealthy donors will be free to tackle other problems later.

The Gates Foundation had planned to wind down two decades after Gates' death, meaning today’s announcement significantly moves up that timetable. Gates plans to stay engaged, though at 69, he acknowledged he may not have a say.

In its remaining two decades, the foundation will maintain a budget of around $9 billion a year, which represents a leveling off from its almost annual growth since 2006, when Buffett first started donating.

Suzman expects the foundation will narrow its focus to top priorities.

“Having that time horizon and the resources just puts an even greater burden on us to say, ‘Are you actually putting your resources, your thumb down, on what are going to be the biggest, most successful bets rather than scattering it too thinly?’" Suzman said, which he acknowledged was creating uncertainty even within the foundation about what programs would continue.

Major changes preceded the foundation's 25th year.

In 2021, Melinda French Gates and Bill Gates divorced, and Buffett resigned as the foundation’s trustee. They recruited a new board of trustees to help govern the foundation, and in 2024, French Gates left to continue work at her own organization.

French Gates said she decided to step down partly to focus on countering the rollback of women’s rights in the U.S. At the ELLE Women of Impact event in New York in April, she said she wanted to leave the foundation at a high point.

“I so trusted Mark Suzman, the current CEO," she said. “We had a board in place that I helped put in place, and I knew their values.”

Even as the foundation’s governance stabilizes, the road ahead looks difficult. Enduring conflicts in Ukraine and Gaza, global economic turmoil and cuts to foreign aid forecast fewer resources coming to global health and development.

“The greatest uncertainty for us is the generosity that will go into global health,” Gates said. “Will it continue to go down like it has the last few years or can we get it back to where it should be?”

Even facing these obstacles, Gates and the foundation speak, as they often do, with optimism, pointing to innovations they’ve funded or ways they’ve helped reduce the cost of care.

“It’s incredible to come up with these low-cost things and tragic if we can’t get them out to everyone who needs them,” Gates said. “So it’s going to require renewing that commitment of those who are well off to help those who are in the greatest need.”

Associated Press coverage of philanthropy and nonprofits receives support through the AP’s collaboration with The Conversation US, with funding from Lilly Endowment Inc. The AP is solely responsible for this content. For all of AP’s philanthropy coverage, visit https://apnews.com/hub/philanthropy.

FILE - Co-chair of the Bill & Melinda Gates Foundation Melinda French Gates smiles as she leaves June 23, 2023 the Elysee Palace in Paris. (AP Photo/Christophe Ena, file)

People walk by a Gates Foundation sign at the foundation's campus Wednesday, April 30, 2025, in Seattle. (AP Photo/Lindsey Wasson)

FILE - Bill Gates speaks during the Global Fund's Seventh Replenishment Conference, Sept. 21, 2022, in New York. (AP Photo/Evan Vucci, File)

Gates Foundation CEO Mark Suzman poses for a portrait at the Gates Foundation campus Wednesday, Feb. 12, 2025, in Seattle. (AP Photo/Lindsey Wasson)

FILE - Berkshire Hathaway Chairman and CEO Warren Buffett smiles during an interview in Omaha, Neb., May 7, 2018, with Liz Claman on Fox Business Network's "Countdown to the Closing Bell". (AP Photo/Nati Harnik, File)

OMAHA, Neb. (AP) — Union Pacific hopes regulators will be convinced this time that its $85 billion acquisition of Norfolk Southern that it detailed for the second time Thursday will be good for the country.

The U.S. Surface Transportation Board rejected Union Pacific's initial application because regulators wanted more details about how the deal would affect the competitive balance between the five remaining major freight railroads and the impact on customers.

Union Pacific CEO Jim Vena said the new application makes an even stronger case for the benefits of the merger that he believes would shave a day or two off the delivery time for many shipments because they would no longer have to be handed off between two railroads in the middle of the country. The Omaha, Nebraska-based railroad projects that the merger could lead to shifting 2.1 million truckloads off the highway onto trains.

Vena said CSX and BNSF are already improving their operations to ensure they can compete ,and shippers will benefit from that if the deal is approved. Plus, he pointed out that since BNSF is owned by Warren Buffett's Berkshire Hathaway it has the financial resources to do whatever is needed because Berkshire is sitting on nearly $400 billion cash.

“The first few years after this, it’s gonna be like one of those old 15-round boxing fights. Prices are gonna be used, the service is going to be used, everything. And I think the customer’s going to be the winner in all this while we knock down, drag it out, to see who can win and grow their market share,” Vena said.

But the STB established a high bar for major railroad mergers like this one around the turn of the century after past rail mergers snarled freight and led to prolonged disruptions while two railroads worked to integrate their networks. Now Union Pacific has to demonstrate that this deal will enhance competition.

Vena said he's confident the railroads can avoid the integration problems of past mergers because they will take it slow while listening to a new board of customers about the impact. Plus this would be a combination of two successful railroads instead of many deals of the past where one thriving railroad took over another nearly bankrupt one in disrepair.

The deal includes a provision that if the STB requires more than $750 million in concessions Union Pacific can consider walking away, but it won't automatically doom the deal, the railroads disclosed Thursday as they submitted a copy of their merger agreement. Norfolk Southern would be entitled to a $2.5 billion breakup fee if the deal falls apart.

Currently, Norfolk Southern and CSX serve the eastern U.S. while Union Pacific and BNSF serve the west, and the two major Canadian rails compete where they can with their tracks crossing Canada and extending into the United States and Mexico.

A merged Union Pacific would likely control nearly 40% of the nation’s freight, but the railroad said that currently BNSF delivers that much of the nation's freight. So the railroads said the deal would shift which railroad dominates the market but wouldn't dramatically change the competitive balance.

But competitors BNSF and CPKC railroads joined a new coalition Wednesday to highlight concerns that the deal could hurt shippers and eventually consumers if it leads to higher rates for companies that have few options besides rail to get their raw materials and deliver their products. The coalition also includes trade groups for chemical and agricultural shippers and the unions that represent engineers and track maintenance workers.

“This did not begin with a customer asking for a UP-NS merger to happen,” BNSF CEO Katie Farmer said. “It’s driven by Wall Street on the promise of a big shareholder payout. It will eliminate competition, raise costs for consumers, and destabilize the supply chain that powers the American economy.”

But the biggest rail union and hundreds of shippers have backed the deal that would cut the number of major freight railroads across America down to five.

Union Pacific has promised that every union employee who has a job with either railroad at the time of the merger will have a job for life although the workforce could still shrink through attrition if the number of shipments slows down. But UP sounded an optimistic note Thursday and predicted that more than 1,200 new jobs will be created by the third year after the deal to handle the increased freight.

Previously, the railroads predicted 900 new jobs. But the new traffic data the railroads analyzed from all the major freight railroads convinced executives that more job growth is likely.

If the STB accepts this new application, regulators will likely spend more than a year analyzing every aspect of the deal.

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FILE - Union Pacific CEO Jim Vena talks in front of a locomotive simulator used to train engineers at the company's headquarters in Omaha, Neb., Dec. 15, 2023. (AP Photo/Josh Funk, File)

FILE - A Norfolk Southern freight train rolls past the U.S. Steel's Clairton Coke Works, in Clairton, Pa., Tuesday, Aug. 12, 2025. (AP Photo/Gene J. Puskar, File)

FILE - A Union Pacific worker walks between two locomotives that are being serviced in a railyard in Council Bluffs, Iowa, on Dec. 15, 2023. (AP Photo/Josh Funk, File)