Additional Coverage:
- Texas Lt Gov Dan Patrick proposes giving each newborn $1K invested in stock market (foxbusiness.com)
Texas Lt. Governor Proposes “New Little Texan Savings Fund” for Every Newborn
AUSTIN, TX – Texas Lieutenant Governor Dan Patrick has unveiled an ambitious proposal to kickstart every baby born in the Lone Star State with a $1,000 investment in the stock market. Dubbed the “New Little Texan Savings Fund,” this initiative, inspired by a federal plan, aims to instill financial literacy and provide a future boost for young Texans.
Patrick, a Republican, announced his plan on Wednesday, stating it would be a top priority during the 2027 legislative session. “If I see a great idea from the President that helps Texans, my first question is always, ‘why not do it in Texas, too?'”
Patrick shared on social media. He highlighted the significant number of births in Texas, estimating approximately 1,000 babies born daily, totaling nearly 400,000 annually.
The proposed program would allocate $1,000 in public funds to an investment account for each newborn. Patrick expressed admiration for the federal initiative, which suggests a $1,000 investment for every American newborn, to be held until age 18 and used for educational or other qualifying expenses.
The Texas plan is projected to cost the state around $400 million per year, which Patrick noted is less than 1% of the state’s current two-year budget. He also indicated an interest in amending the state constitution to ensure the program’s permanence. “This is a great way to return money back to families and to teach the value of savings and compound interest to young Texans,” he added.
This state-level proposal builds upon existing efforts, including a significant commitment from Texas billionaires Michael and Susan Dell, who pledged $6.25 billion to support the federal program, offering $250 to eligible children under 10. The federal initiative, which deposits $1,000 into investment accounts for eligible U.S. citizen newborns with a Social Security number born between January 1, 2025, and December 31, 2028, also allows parents to contribute up to $2,500 annually in pretax income.
Should Patrick’s proposal be enacted alongside the federal initiative, each Texas newborn could potentially receive a total of $2,000, plus any contributions from the Dells and family members.
Senator Ted Cruz (R-Texas), who authored the federal “Trump Accounts” plan, lauded Patrick’s proposal, asserting that such accounts would “create a whole new generation of capitalists invested in America’s success.” Cruz expressed his excitement on social media, writing, “I’m thrilled to see the Lone Star State and my good friend @DanPatrick taking this even further for Texas kids. Bravo!”
However, the plan has not been without its critics. Texas Policy Research, a nonprofit advocating for “liberty-based” policies, voiced strong opposition to the idea, even before a bill has been filed.
The organization stated, “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.” They concluded, “Texans deserve lower taxes, not new programs that grow government indefinitely.
Do better.”