Overview
- U.S. Rep. Julie Fedorchak is holding sign-up events in North Dakota to help parents enroll in the new opt-in investment accounts for babies born from 2025 through 2028.
- Each account receives a one-time $1,000 government deposit and offers tax-deferred growth with up to $5,000 in extra yearly contributions from parents, businesses, or other donors.
- Program rules set initial government deposits to start on July 4 and close new enrollment on December 31, 2028, with a separate $250 contribution available to the first 25 million children under 10 in communities with median incomes of $150,000 or less.
- Fedorchak says the accounts are meant to boost savings for education or a first home and are not a replacement for Social Security, after Sen. Ted Cruz publicly framed them as a step toward privatization.
- Analysts and the Urban Institute say higher-income households are most likely to benefit, and economist Dean Baker estimates typical real returns near 3% that would grow the $1,000 seed to about $1,700 by age 18.