AUSTIN, Texas — Business and political leaders are set to gather in downtown Austin later today to discuss “Trump accounts” and how Texas companies could help fund the tax-advantaged investment accounts for employees’ children.
Sen. Ted Cruz, Michael Dell and other business leaders are expected to attend the meeting, which starts at 2 p.m. The discussion is expected to focus on whether companies will contribute to the accounts and, if so, how much.
Trump accounts are tax-advantaged investment accounts for children. Eligible babies born from 2025 through 2028 can receive a one-time $1,000 contribution from the federal government. Families and others can add money, and employers can contribute up to $2,500 a year.
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Some Democratic lawmakers have raised concerns about the program, but California Gov. Gavin Newsom voiced support for it in remarks made just over a week ago.
“I’m enthusiastic about encouraging people to get a Trump account. I think it’s incredibly important. It’s one of the best things he’s done. It’s one of the best things Ted Cruz has done,” Newsom said.
Texas could eventually pursue a similar state program. Lt. Gov. Dan Patrick has proposed the “New Little Texan Savings Fund,” which would put $1,000 of state money into an investment account for babies born in Texas. The proposal has not been adopted. Patrick wants lawmakers to take it up during the 2027 legislative session.
Cruz has said his goal with Trump accounts is to give children an ownership stake in the economy, writing: “Instead of making Americans dependent on government, they will make every child in America a capitalist. Every child will be an owner. Every child will have a stake.”