Overview
- Lt. Gov. Dan Patrick unveiled the “New Little Texan Savings Fund” to invest $1,000 per baby in an S&P 500 fund, with an estimated cost of about $400 million a year.
- If paired with the federal program, eligible Texas newborns could start with $2,000, while a $6.25 billion pledge from Michael and Susan Dell adds a targeted $250 for many children.
- The federal Trump Accounts deposit $1,000 for U.S. citizens born between Jan. 1, 2025, and Dec. 31, 2028, with withdrawals generally restricted until age 18 for uses such as education, a first home, or starting a business.
- Parents can add up to $2,500 in pretax contributions annually under the federal rules, with additional contributions permitted from family, employers, philanthropies, or state governments.
- Patrick plans to prioritize the measure in the 2027 session and pursue a constitutional amendment, as supporters like Sen. Ted Cruz cheer the idea and conservative groups oppose it as government expansion.