If passed, this program would make Texas the first state to add a state-level investment to the federal “Trump Accounts,” a program introduced under President Donald Trump’s tax and spending legislation. Under both the state and federal programs, Texas children could see their $1,000 investment grow over the years through the S&P 500 until they reach 18, when they can access the funds for education, homeownership, or starting a business.
A Strong Investment in Texas’ Future
The Texas proposal would cost the state approximately $400 million annually, which is less than 1% of the state’s two-year budget. According to Lt. Gov. Patrick, the program would not only provide financial support but also teach young Texans the value of savings and compound interest. The funds would be invested in the S&P 500, with the hope that they will grow over the years and provide a solid financial start for the state’s next generation.
“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 said in a statement.
In addition to the $1,000 Texas deposit, children could receive an additional $1,000 from the federal program, bringing the total to $2,000. Furthermore, the federal program allows parents to contribute up to $2,500 annually, which could further increase the amount in the accounts. This combination of state and federal contributions could provide significant long-term wealth-building opportunities for children born in Texas, particularly those from low-income families who may otherwise have limited access to investment opportunities.
Opposition and Concerns Over Government Spending
Despite support from some policymakers, the proposal has sparked backlash from conservative groups who see it as an expansion of government spending. Texas Policy Research, a group that advocates for “liberty-based” policies, voiced concerns that the initiative would replace personal responsibility with government dependence.
“We are opposed to this idea before the bill is even filed,” the group stated 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.”
Critics argue that the program could add unnecessary financial burdens to taxpayers, particularly if it becomes a permanent part of the state’s budget. While Patrick has proposed a constitutional amendment to make the initiative permanent, these concerns highlight broader debates over the role of government in wealth-building and financial aid.
A Broader Movement Toward Wealth-Building for Children?
Should the Texas proposal pass, it could influence other states to consider similar programs. The federal “Trump Accounts,” which will be rolled out in 2026, are already generating interest across the country, and the addition of a state-level program could amplify discussions on how to address wealth inequality among children. In addition to Patrick’s initiative, Austin billionaires Michael and Susan Dell have pledged $6.25 billion to support the federal program, which aims to supplement the $1,000 investments for qualifying children.
While the final outcome of both the state and federal programs remains uncertain, the Texas initiative has the potential to pave the way for broader discussions on how government policies can help future generations build financial security. For now, the proposal is set to be a key issue in the 2027 Texas legislative session, and its success or failure could impact how other states view wealth-building opportunities for their youngest residents.
