Starting July 4, 2026—the nation's 250th birthday—every child born in the U.S. will receive a $1,000 government-funded investment account, thanks to the newly passed Invest America Act.
What Happened: The legislation, introduced by Sen. Ted Cruz (R-Texas) and backed by President Donald Trump, aims to build generational wealth by seeding every American newborn with a tax-advantaged investment in the S&P 500.
The accounts allow up to $5,000 in additional contributions from family, friends, or businesses. Funds grow tax-deferred and become accessible at age 18, with restrictions on early withdrawals.
Michael Dell, CEO of Dell Technologies (NYSE:DELL), pledged to match the federal $1,000 contribution for the children of his employees.
"The Invest America Act just cleared Congress—every U.S. child gets a $1K S&P 500 starter account at birth. 70M kids gaining a stake in America's growth… future-proofing prosperity!" Dell posted on X, formerly Twitter, after the bill passed.
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OpenAI CEO Sam Altman also praised the initiative, posting on X, "This is very cool; every U.S. child gets a $1k S&P account at birth. more stuff like this, please!"
Previously, Goldman Sachs (NYSE:GS) CEO David Solomon and Uber Technologies, Inc. (NYSE:UBER) CEO Dara Khosrowshahi also expressed support for the initiative.
Why It's Important: Renowned investor Warren Buffett hasn't directly commented on the plan, but as per the available reports, it fits his belief in starting to invest early and holding investments long-term.
Back in 1999, Buffett told a shareholder that the secret to becoming a multi-billionaire is to "start young," comparing compound interest to a snowball that grows bigger the longer it rolls.
Last month, economist Peter Schiff criticized the initiative, calling it unconstitutional and a "bad idea." He argued it would add debt that future generations must repay and said it distracts from larger fiscal issues.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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