Overview

• The 'MAGA Accounts Contribution Pilot Program' would provide $1,000 investment accounts for U.S. children born between 2025 and 2028, pending approval of the House GOP tax bill.
• Parents, family, and employers could contribute up to $5,000 annually to these accounts, which would grow through private equity investments and be taxed at capital gains rates upon withdrawal.
• Senator Ted Cruz, who originally branded the initiative as the 'Invest America Act,' has championed the program to promote early financial participation and foster a 'generation of capitalists.'
• The accounts are part of President Trump's 'One, Big, Beautiful Bill,' which includes $4.9 trillion in tax cuts and funding adjustments, facing scrutiny over its potential impact on the national debt.
• The House Ways and Means Committee will begin markup sessions to debate the program’s specifics and finalize the broader tax reform package ahead of a Memorial Day deadline.