A $1,000 investment account for every American newborn is on the verge of becoming federal law, thanks to a partnership between U.S. Sen. Ted Cruz (R-Texas) and President Donald J. Trump, whose support is propelling the measure through Congress.
What began as a poker-table conversation in April 2024 between Cruz and professional card player Phil Hellmuth has evolved into a headline initiative of the Trump administration’s economic agenda. Now branded as “Trump accounts”, the policy would establish a tax-deferred investment account for every child born in the U.S., seeded with $1,000 in federal funds.
“A Pro-Family Capitalist Policy”
The proposal is part of the Republican Party’s sweeping “One Big Beautiful Bill” — a landmark tax and spending package backed aggressively by President Trump. Cruz, the provision’s chief architect, says it represents a generational investment in both financial literacy and economic opportunity.
“This is a pro-family initiative that will help millions of Americans harness the strength of our economy to lift up the next generation,” President Trump said earlier this month during a White House event celebrating the bill.
Under the proposal, every newborn with a Social Security number — and whose parents also have valid SSNs — would receive a $1,000 federally backed investment account. The funds would be invested in a stock index fund and grow tax-deferred over time.
At 18, the child could access half the account — for qualified expenses such as higher education, a home purchase, or launching a business — with the rest becoming available at age 25, and full access unlocked at 31.
A “Legacy” Provision
Cruz, who has been campaigning for the policy within GOP circles, sees it as a defining piece of the administration’s legislative agenda.
“I stood up and said, ‘There are a lot of important items in this bill, but what will people remember 20 years from now?’” Cruz recalled of a recent strategy session with fellow senators. “I believe this will be part of the legacy.”
Thanks to President Trump’s directive, House Speaker Mike Johnson ensured the Trump accounts were included in the House version of the reconciliation bill. On Monday, the Senate Finance Committee added the measure to the Senate version as well — an important procedural milestone toward final passage.
Trump’s full-throated support has effectively locked in Republican backing, making it likely that the accounts will be part of the final bill Trump signs into law — potentially within weeks.
Support and Scrutiny
Cruz believes the measure could spark a cultural shift toward early investing, especially if employers begin matching contributions. Michael Dell, founder of Dell Technologies, has already pledged $1,000 contributions to the Trump accounts of employees’ children.
Still, policy experts have raised concerns. Critics worry the one-time $1,000 benefit could widen the wealth gap, since lower-income families may struggle to contribute additional funds, while wealthier families could max out the $5,000 annual contribution limit, compounding their gains over time.
Analysts like Madeline Brown of the Urban Institute have suggested a more progressive model — one that scales federal contributions based on income — similar to “baby bonds” proposed by Democrats like Sen. Cory Booker (D-NJ) and Rep. Ayanna Pressley (D-MA).
Cruz, however, is confident that the broader economy and philanthropy will help close those gaps.
“I think Trump accounts will become a major employee benefit,” he said. “And for lower-income families, I expect foundations and nonprofits will step up.”
What’s Next
With President Trump actively championing the policy and congressional Republicans rallying behind it, Trump accounts are now one of the most likely provisions to survive reconciliation negotiations. A final vote is expected later this summer, with Trump poised to sign the bill into law shortly thereafter.
