Lt. Gov. Dan Patrick says Texas should create its own version of President Donald Trump’s new child investment accounts, announcing that the state should provide every Texas newborn with an additional $1,000 in publicly funded, long-term savings beginning in 2027.
The initiative mirrors and expands upon the federal Trump Accounts program created under the One Big Beautiful Bill Act of 2025, which seeds every American newborn’s account with $1,000 that cannot be accessed until adulthood and grows through investment in a broad U.S. stock-market index. The accounts are intended to accumulate wealth from birth and teach families and children long-term financial planning.
In a post on X, Patrick said he “loves” Trump’s idea to invest $1,000 at birth that “cannot be spent until age 18 and must be used for education or other qualifying expenses,” and he applauded Texans Michael and Susan Dell for contributing $6.25 billion to help launch the federal program.
“If I see a great idea from the President that helps Texans, my first question is always, ‘why not do it in Texas, too?’” wrote Patrick.
He noted that about 400,000 babies are born each year in Texas and said that one of his top priorities for the 2027 legislative session will be passing what he calls the “New Little Texan Savings Fund.” Under the proposal, Texas newborns would receive an additional $1,000 from the state treasury at birth, invested in the S&P 500 in alignment with the federal program. Combined with Trump Accounts, Patrick says Texas children would receive a total of $2,000 in initial investment capital, not including voluntary family contributions.
Patrick estimates that the Texas portion would cost roughly $400 million annually, calling it “about 1% or less of our total state appropriations.” He also said he intends to pursue a constitutional amendment to make it a permanent program, framing the effort as both economic and cultural.
“This is a great way to return money back to families and to teach the value of savings and compound interest to young Texans,” Patrick said.
U.S. Sen. Ted Cruz has thrown his support behind the effort and publicly touted his role in crafting the federal Trump Accounts.
“I was incredibly proud to author the federal legislation creating Trump Accounts,” Cruz wrote. He said they were designed to allow contributions by “family, friends, employers, state governments, and philanthropists” to build investment accounts for children.
“Trump Accounts will create a whole new generation of capitalists invested in America’s success,” Cruz added. “I’m thrilled to see the Lone Star State and my good friend Dan Patrick taking this even further for Texas kids.”
More details on the federal program are expected in the coming weeks, with the accounts scheduled to begin opening and receiving initial government funding starting on July 4, 2026.
