The Invest America Act, a new proposal from US Senator Ted Cruz, is intended to boost Americans ‘ long-term financial security by granting each newborn child in the US a$ 1, 000 investment at birth. The funds may be invested in a personal, tax-favored S&, P 500 index tracker. Each Invest America account will be accessible to contributions from people, family members, friends, and businesses up to$ 5, 000 annually, according to a press release cited by Fox News. Withdrawals are permitted after the child turns 18 and are only taxed at the capital gains price, so these accounts do grow tax-deferred. According to Cruz, the assess may influence how millennials will accumulate wealth. Every child in America may have personal expense accounts that will grow over the course of their lives, boosting the prosperity and economic cooperation of the majority of Americans, he said, adding that it will be regarded as a “landmark success” of the Republican-led Congress. The Invest America Act‘s introduction comes amid growing nationwide concern about the$ 36. 2 trillion US national debt. Around 3.6 million babies were born in the US in 2024, which means the initial investment would cost about$ 3.6 billion annually, according to Fox 26 Houston, though some may have questions about the cost. Following a associated pilot program appearing in the House Ways and Means Committee’s review of revenue reform legislation, the action gained speed. The pilot, which is known as the Money Accounts for Growth and Advancement ( MAGA accounts ), would only allow children born between 2024 and 2028 to receive the$ 1, 000 federal contribution and only if they are 8 or younger. According to Semafor, Cruz said,” What is effective is allowing every child in America to have an expense account and a play in the British free enterprise system.” The House Ways and Means Committee will take up the broad package’s” The One, Big, Beautiful Bill” on Tuesday. Cruz and his supporters are pleased that the MAGA records were included in that act. The Invest America Act, as proposed by President Trump, was open the door for new avenues for financial education and investment in young people, according to Fox 26 Houston.
