Texas is considering a groundbreaking proposal to provide every newborn with $1,000 invested in the stock market.
Why It Matters
Lieutenant Governor of Texas Dan Patrick revealed plans for this initiative as a way to mirror a new federal program signed into law under President Donald Trump, known as “Trump Accounts.”
If enacted, Texas’s “New Little Texan Savings Fund” would make it the first state to add such an automatic state-level investment to the national plan, potentially doubling the funds available to Texas children and sparking debate about the balance between government support and fiscal conservatism.
The move could signal a trend toward broader wealth-building measures for American children, especially at a time when access to stock market investments remains uneven across income groups.
What To Know
On Wednesday, Patrick announced his plan to introduce legislation during the 2027 session to create investment accounts for every baby born in Texas.
Each account would receive a $1,000 deposit of public funds invested in the S&P 500.
Patrick suggested this new state-level program would be modeled after the federal “Trump Accounts” provision, created as part of Trump’s major tax and spending legislation earlier in 2025.
The cost for Texas would be about $400 million per year, less than 1 percent of the state’s current two-year budget, Patrick said.
Patrick also proposed a constitutional amendment to make the program permanent, which would require support from two-thirds of the Texas Legislature and approval by Texas voters.
Trump’s federal program would provides $1,000 to every child born from January 1, 2025, through December 31, 2028, whose parents claim the benefit. It requires a U.S. Social Security number and restricts withdrawals until age 18, except for specific uses such as education, home down payments, or starting a business.
In addition, Austin billionaires Michael and Susan Dell have pledged $6.25 billion to supplement the Trump accounts, offering an extra $250 to eligible children under age 11 who meet certain family income criteria and live in certain ZIP codes.
The Dell contribution primarily targets children who do not qualify for the federal $1,000 newborn benefit (those born before January 1, 2025).
What People Are Saying
Lieutenant Governor Dan Patrick said: “I love President 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.
“If I see a great idea from the President that helps Texans, my first question is always, ‘why not do it in Texas, too?’ 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. 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
“Adding that to the President’s program, newborn Texans will receive a total of $2,000, plus any additional funds contributed by their family as allowed under the Trump plan.”
Republican Senator Ted Cruz, an early proponent of the federal plan, said: “I’m thrilled to see the Lone Star State and my good friend Dan Patrick taking this even further for Texas kids. Bravo!”
Texas Policy Research, a group emphasizing ‘liberty-based’ policies, said: “We are opposed to this idea before the bill is even filed. 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. Texans deserve lower taxes, not new programs that grow government indefinitely.”
What Happens Next
If both the Texas and federal programs move forward, every eligible newborn in Texas could have $2,000 seeded in stock market investments at birth.
Nationally, the federal Trump Accounts and the Dells’ private gift are scheduled to roll out on July 4, 2026. Parents will be able to open the accounts once the IRS finalizes the enrollment form and the online system goes live.
The outcome in Texas may serve as a model for other states considering similar measures and could influence future discussions on government-backed child wealth-building initiatives.
