Dan Patrick reveals ‘New Little Texan Savings Fund’ that would cost state $400 million per year, what happens to the money will surprise you

Lt. Gov. Dan Patrick has proposed a new program for Texas newborns. The state would invest $1,000 into the stock market for every baby born in Texas. He calls it the “New Little Texan Savings Fund” and plans to push for it during the 2027 legislative session. Texas has about 400,000 births each year, which means roughly 1,000 babies every day.

According to Fox Business, the program would cost the state around $400 million per year. That amount is less than 1% of Texas’ current two-year budget. Patrick believes this is a good way to return money to families and teach young people about saving and compound interest. He wants to change the state constitution to make the program permanent.

Patrick got the idea from President Trump’s federal spending bill passed earlier this year. The federal “Trump Accounts” program puts $1,000 into investment accounts for children whose parents sign up for the benefit. To qualify for the federal funds, babies must be U.S. citizens with Social Security numbers and born between January 1, 2025, and December 31, 2028.

The money can’t be touched until age 18

“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 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 likes that the money stays locked until the child turns 18. It can only be used for education or other approved expenses. This makes sure the money goes toward building a future instead of regular spending.

If Patrick’s Texas plan passes, every Texas newborn would get $2,000 total from both state and federal governments combined. Texas billionaires Michael and Susan Dell have already promised $6.25 billion to support the federal program. They’re offering $250 to each qualified child under age 10.

Parents can also add up to $2,500 per year in pretax income under the federal program. This debate comes as political tensions rise nationwide, with some leaders issuing warnings about America’s future direction.

Senator Ted Cruz, who wrote the federal law, praised Patrick’s proposal. Cruz said on X that he was “thrilled to see the Lone Star State” and Patrick “taking this even further for Texas kids.” Cruz believes the “Trump Accounts” will “create a whole new generation of capitalists invested in America’s success.”

Not everyone supports the plan. Texas Policy Research, a nonprofit promoting “liberty-based” policies, came out against it. They believe creating state-run wealth accounts “violates key liberty principles.” They think the plan grows government instead of limiting it and replaces personal responsibility with state dependency. Meanwhile, political discussions continue across different topics, including a Ukrainian journalist’s encounter in Paris.

The group also claims it hurts free enterprise by making the state an investor. Texas Policy Research ended by saying, “Texans deserve lower taxes, not new programs that grow government indefinitely. Do better.”