Sen. Cruz introduces Invest America Act
WASHINGTON, D.C. – U.S. Sen. Ted Cruz (R-Texas) this week introduced the Invest America Act. The bill establishes a private tax-advantaged account with a $1,000 seed investment from the federal government for every American child at birth.
Meanwhile, the bill made a major advance when the U.S. House of Representatives today released a version of Senator Cruz’s bill in the House Ways and Means Committee budget package.
Sen. Cruz said, “The Invest America Act will trigger fundamental and transformative changes for the financial security and personal freedoms of American citizens for generations. Every child in America will have private investment accounts that will compound over their lives, enhancing the prosperity and economic participation of the vast majority of Americans. When people years from now talk about the changes created by Republican efforts this Congress, this is one of the landmark achievements they will talk about.”
Brad Gerstner, Founder, Chairman, and CEO of Altimeter Capital, said, “Invest America accounts are central to the Main Street Agenda — pulling every kid off the sidelines and putting them squarely in the game. When everyone realizes they can be an owner, it unites our country around free-market principles and unleashes the next generation of American success. This progress would not be possible without Senator Cruz’s leadership.”
Michael Dell, Founder, Chairman, and CEO of Dell Technologies, said, “Invest America accounts put every child in the front row of our economy. When the power of compounding meets the energy of young minds, we’re not just growing portfolios—we’re fostering the next generation of builders, dreamers, and doers who will keep America leading the world.”
BACKGROUND
Each Invest America account will be open to contributions from individuals, family members, friends, and businesses up to $5,000 annually. The account investments can be placed in a broad, low-cost fund that tracks the S&P 500, growing tax-deferred until the individual reaches age 18. Distributions after age 18 would be taxed at the capital gains rate.