# 119-s-1581: Universal Savings Account Act of 2025

119-s-1581, Universal Savings Account Act of 2025, is a 119th Congress bill sponsored by Sen. Cruz, Ted [R-TX] (R-TX); status introduced; PRIA reads it as touching household money (as of 2026-06-14).

- Canonical: https://policyrisk.com/legislation/119-s-1581
- As of: 2026-06-14
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Bill: 119-s-1581
- Congress: 119
- Title: Universal Savings Account Act of 2025
- Status: introduced
- Introduced: 2025-05-01
- Sponsor: Sen. Cruz, Ted [R-TX] (R-TX)
- Cosponsors: 1
- Policy area: Taxation
- Touches household money: yes
- Last recorded action: 2026-06-14

## Summary

**Universal Savings Accounts (USAs)** would create a new tax-preferred personal savings trust for individuals. The bill sets who can run the accounts, how much can be saved each year, and tax and reporting rules for contributions and distributions. - Families and individual savers would get a tax-exempt account for personal savings. Annual contributions start with $10,000 plus $500 for each year after 2024, subject to a $25,000 annual cap and inflation adjustments after 2025. - Trustees and financial firms must be a bank or an approved administrator and keep USA assets separate. Custodial accounts can qualify if held by a bank or other qualified person. - Tax administration would require trustee reporting to the IRS and beneficiaries, allow 60-day rollovers between USAs, treat a surviving spouse who inherits an account as the account holder, and tax excess contributions and certain prohibited transactions under existing penalty rules.

## Cosponsors (1)

- Sen. Justice, James C. [R-WV] (R-WV), 2025-05-08T00:00:00.000Z

## Provisions PRIA read

- Yearly contribution limits: benefit, high. If enacted, yearly contributions to all your USAs (except rollovers) would start at $10,000 for 2025 and increase by $500 for each year after 2024 up to a cap. The total yearly limit would not exceed $25,000, and after 2025 both the base amount and the $25,000 cap would be adjusted for inflation an…
- New tax-free Universal accounts: benefit, medium. If enacted, the bill would create a new tax-preferred account called a Universal Savings Account (USA). A USA would be a trust or qualifying custodial account for one person and would grow generally tax-free. Trustees must meet rules set by the Treasury, assets cannot be invested in life insurance,…
- Tax-free USA withdrawals: benefit, medium. If enacted, distributions you take from a USA would generally not be included in your taxable income. One exception would apply: net income tied to excess contributions would be taxable in the year the excess contribution was made. That makes normal withdrawals likely tax-free but overcontributions…
- Penalties and excess contribution rules: cost, medium. If enacted, excess USA contributions would be subject to an excise tax like other retirement-type excesses. Excesses would equal amounts over the yearly limit plus a carryforward calculation reduced by distributions. USAs would also be subject to prohibited-transaction rules, so disallowed deals wi…
- Trustee reporting and penalties: cost, low. If enacted, trustees of USAs would have to file reports with the IRS and give statements to account holders about contributions, distributions, and other items the Treasury prescribes. Trustees who fail to provide these reports could face penalties under the tax code.

## Related bills

- 119-s-1071: National Defense Authorization Act for Fiscal Year 2026
- 119-s-524: Coast Guard Authorization Act of 2025
- 119-s-3923: Weather Research and Forecasting Innovation Reauthorization Act of 2026
- 119-s-4668: Protect College Sports Act of 2026
- 119-s-2975: PIPELINE Safety Act of 2025
- 119-s-117: AMERICANS Act

## Sources
- [119-s-1581 on Congress.gov](https://www.congress.gov/bill/119th-congress/senate-bill/1581)

## Related
- [119-s-1071: National Defense Authorization Act for Fiscal Year 2026](https://policyrisk.com/legislation/119-s-1071)
- [119-s-524: Coast Guard Authorization Act of 2025](https://policyrisk.com/legislation/119-s-524)
- [119-s-3923: Weather Research and Forecasting Innovation Reauthorization Act of 2026](https://policyrisk.com/legislation/119-s-3923)
- [119-s-4668: Protect College Sports Act of 2026](https://policyrisk.com/legislation/119-s-4668)
- [119-s-2975: PIPELINE Safety Act of 2025](https://policyrisk.com/legislation/119-s-2975)
- [119-s-117: AMERICANS Act](https://policyrisk.com/legislation/119-s-117)
- [All bills in Congress](https://policyrisk.com/legislation)

Source: PRIA, https://policyrisk.com/legislation/119-s-1581 (as of 2026-06-14).