Texas leaders are weighing a proposal that would seed every newborn with $1,000 invested in the stock market.
Lieutenant Governor Dan Patrick says the idea would complement a new federal initiative signed into law under President Donald Trump, known as “Trump Accounts.” If Texas adds its own deposit through a proposed “New Little Texan Savings Fund,” eligible children could effectively start life with a larger investment stake—while reigniting debate over whether government should play a direct role in building household wealth.
Supporters frame the plan as a long-term opportunity to expand access to investing; critics argue it risks growing government and weakening the state’s small-government reputation.
What To Know
On Wednesday, Patrick said he plans to introduce legislation in the 2027 session to create an investment account for every baby born in Texas.
Under the proposal, each account would receive a $1,000 deposit of public money and be invested in the S&P 500. Patrick said the program would cost roughly $400 million a year—less than 1 percent of the state’s current two-year budget.
He also floated pursuing a constitutional amendment to make the program permanent, a move that would require support from two-thirds of the Texas Legislature and approval by voters.
Patrick said the plan is intended to mirror the federal “Trump Accounts” provision, created as part of Trump’s major tax and spending legislation earlier in 2025.
At the federal level, the program would provide $1,000 for every child born from January 1, 2025, through December 31, 2028, as long as parents claim the benefit. The program requires a U.S. Social Security number and limits withdrawals until age 18, with exceptions for certain purposes such as education, a home down payment, or starting a business.
Separately, Austin billionaires Michael and Susan Dell have pledged $6.25 billion to supplement the Trump accounts. Their commitment would add $250 for eligible children under age 11 who meet certain family income requirements and live in specified ZIP codes. The Dell contribution is primarily aimed at children who do not qualify for the federal $1,000 newborn benefit—those born before January 1, 2025.
What People Are Saying
Lieutenant Governor Dan Patrick:
“I love President Trump’s idea to invest $1,000 for every American newborn child, that cannot be spent until age 18 and must be used for education or other qualifying expenses.
“If I see a great idea from the President that helps Texans, my first question is always, ‘why not do it in Texas, too?’ A baby is born about every 90 seconds in Texas. That’s about 1,000 per day, or just under 400,000 per year for the last several years. One of my top priorities in the 2027 legislative session will be to pass the New Little Texan Savings Fund to give newborn Texans an additional $1,000 each, invested in the S&P 500 as aligned with the federal program
“Adding that to the President’s program, newborn Texans will receive a total of $2,000, plus any additional funds contributed by their family as allowed under the Trump plan.”
Sen. Ted Cruz:
“I’m thrilled to see the Lone Star State and my good friend Dan Patrick taking this even further for Texas kids. Bravo!”
Texas Policy Research:
“We are opposed to this idea before the bill is even filed. Creating state-run wealth accounts for every newborn violates key liberty principles: It expands government rather than limiting it, replaces personal responsibility with state dependency and undermines free enterprise by turning the state into an investor. Texans deserve lower taxes, not new programs that grow government indefinitely.”
What Happens Next
If both the Texas plan and the federal program proceed, eligible newborns in Texas could start with $2,000 invested at birth—before any additional family contributions allowed under the federal structure.
Nationally, the federal Trump Accounts and the Dells’ private gift are slated to launch on July 4, 2026. Parents would be able to open accounts once the IRS finalizes the enrollment form and the online system goes live.
What Texas ultimately decides could shape how other states approach similar child wealth-building programs—and influence the wider debate over government–backed investing as a tool to reduce long-term inequality.
