Rep. Blake Moore, R-Utah, is set to introduce legislation establishing a new kind of savings account for children. The proposal, known as the Money Accounts for Growth and Advancement (MAGA) Act, aims to create savings accounts that accumulate interest over time until the funds are withdrawn.
The pilot program would begin on Jan. 1, 2026, and be open to children under the age of 8 years old, as well as those born between 2025 and 2028. Moore mentioned that the focus on retirement beneficiaries has led to a “major shortfall” in retirement benefits.
The legislation mirrors language in Republicans’ tax portion of President Donald Trump’s recent tax bill, which was advanced by the House Ways and Means Committee, where Moore is a member. Although MAGA Accounts are included in the reconciliation package, Moore introduced the separate legislation as a safeguard option. Under the pilot program, any parent could open a MAGA Account for their child with a one-time credit of $1,000 from the federal government.
Parents and friends could then contribute up to $5,000 a year until the child turns 18. The accounts would be administered by a bank or financial institution and overseen by the Treasury Department.
New savings initiative for children
To be eligible, the child must be a U.S. citizen with a Social Security number. Once account holders turn 18, they may access 50% of the funds for higher education, training programs, small business loans, or first-time home purchases. At 25, they may withdraw any amount up to the full balance under the same conditions, and at 30, they may withdraw all funds for any purpose.
“These accounts are a way to get individuals, younger folks investing in their future sooner,” Moore said. Sen. Ted Cruz, R-Texas, has introduced similar proposals in the past and collaborated with Moore on the new proposal.
“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. Moore acknowledged that 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.
While the original proposal in the Republican-led reconciliation package may not get Democratic support, Moore expects some bipartisan backing for his bill. “Deep at the core of this concept, it is highly bipartisan,” Moore said. “There might be pushback, but I don’t anticipate this being one of those major pieces.”
Moore’s office is expected to release the bill text as early as Wednesday, although it’s not clear how quickly GOP leaders will act to move the legislation through Congress.
