💸 Money Guide: What is Invest America?

Where the Idea Came From

The idea behind Invest America isn’t new. It draws from decades of bipartisan conversation around how to boost economic mobility and reduce generational inequality. The nonprofit Invest America, founded in 2007, has long advocated for financial literacy and broader access to investment tools.

Momentum for the legislative version of Invest America accelerated in 2025, when Senator Ted Cruz introduced the Invest America Act (S.1718). The bill aimed to make market participation more equitable by giving every child a direct stake in the economy. Prominent backers from the business world—Altimeter Capital’s Brad Gerstner, Dell’s Michael Dell, and the CEOs of Robinhood and Uber—endorsed the proposal as a way to unite Americans through shared economic opportunity and pro-growth policy.

Invest America in the 2025 Budget Bill

Invest America is now front and center in the 2025 budget package—nicknamed the "One Big Beautiful Bill"—a sweeping set of reforms championed by President Trump and congressional Republicans.

Within the bill, the initiative is branded as “Trump Accounts” or “MAGA Accounts” (short for Money Accounts for Growth and Advancement), but the mechanism remains true to the original Invest America vision:

• $1,000 federal contribution at birth for every U.S. citizen born between January 1, 2025, and January 1, 2029.

• Tax-deferred investment accounts, invested in broad market index funds tracking the U.S. economy.

• Optional annual contributions of up to $5,000 from individuals, families, or corporations.

• Funded through a mix of welfare reforms, anti-fraud measures, and a remittance tax on international money transfers.

Supporters see this as a pro-family, pro-growth policy that could help millions of children begin life on stronger financial footing, restore trust in free markets, and narrow the gap between the rich and the rest.

Why It Matters

At its core, Invest America is about economic inclusion. It’s a radical yet simple idea: If you want all Americans to believe in capitalism and economic opportunity, give them a stake in it.

By ensuring every child has a chance to benefit from market growth—not just those born into wealth—the program could become a transformative tool for closing the wealth gap, boosting financial literacy, and promoting generational mobility.

Critics will debate the bill’s branding and funding mechanisms. But for supporters, the essence of Invest America is clear: a future where everyone, regardless of background, has a chance to build wealth in the world’s largest economy.

The New 401(K) or Social Security?

Traditional pension plans are rapidly disappearing from the American workforce, replaced by 401(k)-style defined contribution plans. Once a common benefit offering guaranteed lifetime income in retirement, pensions have become too costly and unpredictable for many employers to maintain. In contrast, 401(k) plans shift the investment responsibility—and risk—to employees, offering more flexibility and portability. Today, fewer than 15% of private-sector workers have access to a pension, while the majority now rely on self-directed retirement savings accounts. This shift marks a fundamental change in how Americans prepare for retirement.

Social Security is facing a looming funding shortfall, with its trust fund projected to be depleted by 2033, according to the latest estimates. After that point, the program will only be able to pay about 77%–80% of scheduled benefits using incoming payroll taxes. This shortfall is driven by an aging population, longer life expectancies, and a shrinking ratio of workers to retirees. Without legislative action—such as raising taxes, cutting benefits, or adjusting the retirement age—millions of Americans could see reduced Social Security payments in the not-so-distant future.

Invest America accounts could serve as a modern alternative to both 401(k)s and Social Security by giving every American a lifelong, market-based investment foundation from birth.

Invest America: Final Thoughts

Invest America represents a bold new frontier in American policymaking—a universal investment account for the next generation. As it advances through Congress, it raises big questions about fairness, freedom, and how we build an economy that works for everyone.

Whether you call them Trump Accounts, MAGA Accounts, or just smart policy, the intent remains the same: to give every child a financial head start and a real shot at economic security.