Overview
- Lieutenant Governor Dan Patrick unveiled the New Little Texan Savings Fund to deposit $1,000 per baby into an S&P 500 investment account modeled on the federal Trump Accounts.
- Patrick says he will push the measure in the 2027 legislative session with an estimate of about $400 million per year and a bid to make it permanent through a constitutional amendment requiring legislative supermajorities and voter approval.
- If both efforts proceed, eligible Texas newborns could start with $2,000 at birth through combined state and federal deposits, with withdrawals restricted until age 18 for qualifying uses.
- The announcement drew immediate criticism from conservative groups such as Texas Policy Research, while Senator Ted Cruz praised the move as an extension of the federal program he championed.
- The federal plan covers U.S. citizens with Social Security numbers born from January 1, 2025, through December 31, 2028, and will roll out alongside a $6.25 billion Michael and Susan Dell pledge that adds targeted $250 grants beginning July 4, 2026.