Texas Lt. Gov. Dan Patrick announced this week that he intends to make a new early-childhood investment program a leading priority when state lawmakers reconvene in 2027. The proposal, called the “New Little Texan Savings Fund,” would grant every newborn in Texas an additional $1,000 in state-seeded investment funds, mirroring a new federal initiative known as “Trump Accounts.”
The federal Trump Accounts program—authored by U.S. Sen. Ted Cruz and passed earlier this year as part of the “One Big Beautiful Bill Act”—will provide $1,000 in federal seed money to American children born from 2025 through 2028. It is scheduled to launch on July 4, 2026. The accounts operate as private investment vehicles and are intended to grow over time in the market.
Patrick said he sees an opportunity for Texas to build on the federal program. In a Wednesday post on X, he wrote, “If I see a great idea from the President that helps Texans, my first question is always, ‘why not do it in Texas, too?’”
He added that one of his primary goals for the upcoming legislative session would be to pass legislation establishing the New Little Texan Savings Fund, explaining, “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.”
Estimated Cost and Structure
Patrick said the proposal would cost the state roughly $400 million per year, a figure he characterized as manageable relative to the size of the state budget. “That is about 1% or less of our total state appropriations. We will amend the state constitution to add this as a permanent program,” he said.
He also pointed to Texas’ high birth rate as an underlying factor in the estimated cost. “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,” he noted.
Corporate Support for Federal Accounts
The Trump Accounts program drew national attention on Tuesday after Texas-based Dell Technologies CEO Michael Dell and his wife Susan announced a $6.25 billion donation, which will provide an additional $250 contribution for 25 million participating children. The day before that announcement, senators Cruz and Cory Booker issued a bipartisan letter encouraging Fortune 1000 company leaders to support the new accounts.
Patrick praised the philanthropic boost and reiterated his support for the federal approach, saying he backed 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.” He added that “President Trump’s plan also allows family members to contribute more to his new baby savings program.”
Looking Ahead to 2027
The Texas Legislature’s next regular session will begin on January 12, 2027, and Patrick indicated he will push for the New Little Texan Savings Fund to be one of the first major items on the agenda. If approved, the program would create one of the largest state-level child investment initiatives in the country, designed to operate in tandem with the federal Trump Accounts over their four-year eligibility window.
%20(1)%20(1)%20(1).png)
