Estimated read time: 4-5 minutes
- Rep. Blake Moore proposes 'MAGA' savings accounts for children, launching in 2026.
- The accounts, with a $1,000 federal credit, aim to boost future investments.
- Moore anticipates bipartisan support, despite potential pushback, for this financial initiative.
WASHINGTON — Utah Rep. Blake Moore is set to introduce legislation establishing a new kind of savings account for children over the next several decades.
Moore is expected to introduce the Money Accounts for Growth and Advancement Act, or "MAGA Act," as early as Wednesday that would create savings accounts designed to accumulate interest over time until the funds are withdrawn. The pilot program would begin on Jan. 1, 2026, and be open to any child under the age of 8 years old, as well as those who are born between the beginning of 2025 and the end of 2028.
"This is actually not a new concept. Ever since I got to Congress, I've heard this discussed in numerous forms," Moore told the Deseret News in an interview. "We have a fundamental problem in that in 2008 we started to go more heavy on retirement beneficiaries and fewer workers."
That focus, Moore argued, has led to a "major shortfall" in retirement benefits.
The legislation mirrors language tucked into Republicans' tax portion of President Donald Trump's "big, beautiful bill" that was unveiled earlier this week. The House Ways and Means Committee, which Moore sits on, advanced that measure early Wednesday morning.
Although the MAGA Accounts are already included in the reconciliation package, Moore introduced the separate legislation as a safeguard measure as negotiations of the larger budget framework continue.
If the full budget framework passes with the MAGA Accounts included, Moore's bill "won't be required," he said — but it acts as a backup option in case amendments are required in the future.
"(It's) hedging, of course, against however the reconciliation bill plays out, but you're always going to need to amend the legislation going forward," Moore said. "So we want to establish the track record that we're thinking heavily about these things, and if it gets passed in the reconciliation bill, it's a significant step in the right direction. But there's going to constantly needing to be amendments and things done to it."
How MAGA Accounts would work
The pilot program would allow any parent to open a MAGA Account for their child with a one-time credit of $1,000 from the federal government. Parents and friends of the child could then contribute up to $5,000 a year until the child turns 18.
The accounts would then be administered by a bank or other financial institution and overseen by the Treasury Department.
To be eligible for an account, the child must be a U.S. citizen with a Social Security number provided by at least one of the parents. The Social Security number must be considered "work eligible" in order for the account to be approved.
Once account holders with MAGA Accounts turn 18 years old, they may have access to 50% of funds that may be used only for higher education, training programs, small business loans or first-time home purchases. When the account holder turns 25 years old, they may withdraw any amount up to the full balance so long as they adhere to those limitations.
When account holders turn 30 years old, they may withdraw all funds to use for any purpose.
"These accounts are a way to get individuals, younger folks, investing in their future sooner," Moore said. "I would encourage as many people as possible, and I actually think (the age limits) should be longer to keep that investment opportunity going forward."
'Now is the right time'
The measure is similar to past proposals from Sen. Ted Cruz, R-Texas, known as the Invest America Act. That bill would similarly establish private tax-advantaged accounts with one-time $1,000 credit payments for every U.S. child at birth.
Cruz told the Deseret News he has collaborated with Moore on the new proposal being introduced in the House this week.
"Invest America is transformational legislation that will enhance the financial security and personal freedoms of American citizens for generations to come," Cruz said in a statement. "I have been working with Rep. Moore to ensure this initiative becomes law."
Moore acknowledged the idea of a child savings account isn't new, but said "now is the right time" to act, given the momentum.
The MAGA Act would expire after four years with the option for Congress to renew the program, Moore told the Deseret News.
While the original proposal in the Republican-led reconciliation package is unlikely to get any Democratic support, Moore said he expects his bill to get some bipartisan support.
"Deep at the core of this concept, it is highly bipartisan. I can say that there might be pushback here or there on it right now, but at the core of this — this is a bipartisan effort," Moore said. "In any political moment, there will always be pushback on these things. But I don't anticipate this being one of those major pieces."
Moore's office is expected to release bill text as early as Wednesday, although it's not clear how quickly GOP leaders will act to get the legislation moved through Congress.
