Texas Lt. Gov. Dan Patrick, a Republican, proposed a state program to give every baby born in the Lone Star State $1,000 invested in the stock market, an idea he said was inspired by a federal plan created as part of President Donald Trump’s spending bill earlier this year.
"If I see a great idea from the President that helps Texans, my first question is always, 'why not do it in Texas, too?'" Patrick wrote Wednesday on X. "A baby is born about every 90 seconds in Texas. That’s about 1,000 per day, or just under 400,000 per year for the last several years."
Patrick said it would be a top priority of his during the 2027 legislative session to create the investment accounts, which he named the "New Little Texan Savings Fund."
The program would invest $1,000 in public funding in the stock market for every baby born in Texas.
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Patrick said he "loves" Trump's idea "to invest $1,000 for every American newborn child, that cannot be spent until age 18 and must be used for education or other qualifying expenses."
The Texas plan would cost the state about $400 million per year, which is less than 1% of Texas’ current two-year budget, Patrick said. He also said he is looking to amend the state constitution to make the initiative a permanent program.
"This is a great way to return money back to families and to teach the value of savings and compound interest to young Texans," he said.
This comes after Texas billionaires Michael and Susan Dell committed $6.25 billion to support the federal program and give $250 to each qualified child under the age of 10.
Under the federal initiative, the U.S. Treasury will deposit $1,000 into investment accounts for children whose parents claim the benefit. A baby must be a U.S. citizen, have a Social Security number and be born between Jan. 1, 2025, and Dec. 31, 2028, to be eligible.
Adding Patrick's proposal to the federal initiative means each Texas newborn would receive a total of $2,000, as well as funding from the Dells and any additional funds contributed by their family as allowed under Trump's plan.
Parents would be allowed to contribute up to $2,500 annually in pretax income under the federal program.
Sen. Ted Cruz, R-Texas, who first introduced the federal plan, praised Patrick's proposal, saying the "Trump Accounts" would "create a whole new generation of capitalists invested in America’s success."
"I was incredibly proud to author the federal legislation creating Trump Accounts, which were uniquely designed to allow anyone—including family, friends, employers, state governments, and philanthropists—to contribute to investment accounts for our kids," Cruz wrote on X.
"I'm thrilled to see the Lone Star State and my good friend @DanPatrick taking this even further for Texas kids," he added. "Bravo!"
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But critics of Patrick's plan opposed the idea on the grounds of being against more government spending.
"We are opposed to this idea before the bill is even filed," Texas Policy Research, a nonprofit focused on promoting "liberty-based" policies, wrote on X. "Creating state-run wealth accounts for every newborn violates key liberty principles: it expands government rather than limiting it, replaces personal responsibility with state dependency, and undermines free enterprise by turning the state into an investor."
"Texans deserve lower taxes, not new programs that grow government indefinitely. Do better," it continued.
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