Texas Lieutenant Governor Dan Patrick is proposing a $1,000 state-funded account for every baby born in Texas, a plan he says would encourage families to start saving early for long-term financial needs.
Patrick outlined the idea this week as part of what he calls the “New Little Texan Savings Fund,” estimating the annual cost at roughly $400 million.
According to Patrick, the program would represent about 1% or less of total state appropriations and would create a seed fund for families to build on as children grow.
The proposal would require approval from the Texas Legislature, which is set to reconvene in 2025, and lawmakers would need to determine how the accounts would be managed, accessed, or restricted.
Supporters of similar models in other states argue that early savings can boost long-term financial stability, while critics often raise questions about cost, oversight, and whether public funds should be used for individual investment accounts.
Patrick has not yet released a detailed bill, but the concept is expected to surface in the upcoming legislative session.