U.S. Senator Pushes $1,000 Investment Accounts for Every Newborn in Bold Wealth Plan
A bold new financial policy aimed at reshaping the economic future of America’s youth has been introduced by Senator Ted Cruz (R-Texas). The legislation, titled the Invest America Act, proposes a federally funded $1,000 investment account for every child born in the United States, marking an ambitious attempt to cultivate generational wealth and boost financial literacy from birth.
2025-05-14 20:23:01 - VI News Staff
The bill, introduced on May 12, seeks to promote long-term financial security for Americans by using compound growth and market investment principles. Under the proposed plan, each child would receive a private, tax-advantaged investment account overseen by the Social Security Administration. The initial $1,000 contribution by the federal government would be invested in an S&P 500 index fund and grow tax-deferred until the account holder turns 18.
Withdrawals at that point would be taxed only at the capital gains rate, providing incentives to let the funds mature. Families, friends, and even businesses could contribute an additional $5,000 per year to the accounts, further enhancing the investment potential. The structure is designed not just to accumulate wealth, but also to expose young Americans to basic investment concepts early in life.
“This bill will trigger fundamental and transformative changes for the financial security and personal freedoms of American citizens for generations,” said Senator Cruz in support of the legislation. “Every child in America will have private investment accounts that will compound over their lives, enhancing the prosperity and economic participation of the vast majority of Americans.”
The initiative has already found momentum within Congress. A version of the legislation has been incorporated into the U.S. House Ways and Means Committee’s budget proposal released on May 11. That draft refers to the accounts as “MAGA accounts,” a nod to the Make America Great Again political movement associated with President Donald Trump. The branding has fueled debate about the bill’s political positioning, even as it moves toward a potential vote in summer 2025 as part of a broader tax package supported by Trump allies.