Patrick’s proposal would be in addition to a federal program that is set to give American babies $1,000 each to invest in the stock market.
Lt. Gov. Dan Patrick on Wednesday proposed a state program to give every baby born in Texas $1,000 invested in the stock market, modeling the idea off a federal plan created as part of President Donald Trump’s tax and spending legislation.
Patrick said on social media he would prioritize a measure during the 2027 legislative session to create the investment accounts, dubbed the “New Little Texan Savings Fund.” The program would invest $1,000 in public funding in the stock market for every baby born in Texas.
The initiative, Patrick said, would cost the state around $400 million per year — less than 1 percent of Texas’ current two-year budget. Patrick added that he would seek to pass a constitutional amendment making the state’s program permanent.
“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 posted on social media. “This is a great way to return money back to families and to teach the value of savings and compound interest to young Texans.”
Patrick’s proposal faced backlash online from conservatives, who argued that the program would increase state spending and grow government.
“We are opposed to this idea before the bill is even filed,” Texas Policy Research, a nonprofit focused on advancing “liberty-based” policies, posted on social media. “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.”
Under the federal plan, which was first pushed by U.S. Sen. Ted Cruz, the U.S. Treasury will deposit $1,000 into investment accounts for American children whose parents claim the benefit. To be eligible for the seed money, a baby must be a U.S. citizen, have a Social Security number and be born between Jan. 1, 2025, and Dec. 31, 2028. Children won’t be able to access the money in their accounts until they turn 18.
On Tuesday, Austin billionaires Michael and Susan Dell pledged $6.25 billion to bolster the federal program and give $250 to each qualified child under 10. The Dells’ accounts will not launch until July 4, 2026.
Between the “Trump accounts” and the state program, newborn Texans would be able to claim $2,000 to invest, in addition to funding from the Dells. Parents would also be able to contribute up to $2,500 annually in pretax income through the federal program.
Cruz celebrated the proposal, arguing that the Trump accounts would “create a whole new generation of capitalists invested in America’s success.”
“I’m thrilled to see the Lone Star State and my good friend @DanPatrick taking this even further for Texas kids,” Cruz posted on social media. “Bravo!”
Source: Kayla Guo, The Texas Tribune
Photo Credit: Lt. Gov. Dan Patrick wants to borrow an idea from President Donald Trump and give every newborn in Texas $1,000 in investments. Ronaldo Bolaños/The Texas Tribune
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