Billionaire hedge-fund boss Bill Ackman hailed Sen. Ted Cruz's proposal to give every newborn American a $1,000 investment account, posting on X: "I have been a fan of this idea for years. It is great to see it finally happening."
What Happened: Ackman's praise followed Cruz's CNBC clip touting the Invest America Act, which the Texas Republican says will “create an investment account for every newborn American child that the federal government will seed with $1,000.” A House version surfaced Tuesday in the Ways and Means Committee's budget package, signaling the plan's first real legislative traction.
Under the bill, each account would track a low-cost S&P 500 index fund. Relatives could add up to $5,000 a year, and the balance could be tapped at 18 for college, a first home or a business launch. Cruz's office estimates the nest egg could hit roughly $170,000 by adulthood, assuming a 7 percent annual return.
What To Know: Backers frame the idea as program that would broaden stock ownership and "cultivate a generation of capitalists," in Cruz's words.
Critics, as per a report by the Houston Chronicle, counter that seeding every baby — about 3.6 million births a year — could cost billions and lacks income caps, raising deficit alarms. House Republicans rebranded the accounts "MAGA Savings" in their draft, reflecting former President Donald Trump's push to add pro-growth sweeteners to a broader 2017 tax-cut extension.
Even with Ackman's Wall Street clout behind it, the measure faces a steep climb in a divided Congress. But the financier's endorsement echoes a rare bipartisan appeal of giving every American a personal stake in the market from day one.
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