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 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 GS CEO David Solomon and Uber Technologies, Inc. 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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