# 119-s-1718: Invest America Act

119-s-1718, Invest America Act, 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 2025-12-21).

- Canonical: https://policyrisk.com/legislation/119-s-1718
- As of: 2025-12-21
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Bill: 119-s-1718
- Congress: 119
- Title: Invest America Act
- Status: introduced
- Introduced: 2025-05-12
- Sponsor: Sen. Cruz, Ted [R-TX] (R-TX)
- Cosponsors: 0
- Policy area: Taxation
- Touches household money: yes
- Last recorded action: 2025-12-21

## Summary

**Creates a new class of Invest America Accounts aimed at encouraging long-term household saving.** The bill would set up tax-advantaged trusts that invest only in qualifying S&P 500 index funds and would seed eligible newborns with a $1,000 federal contribution. - Families and children: Newborns born after July 4, 2026 with at least one U.S. citizen parent would be eligible for an automatic IAA and a $1,000 federal deposit. Certification and automatic account setup rules would be completed within six months of birth. - Savers and households: Individuals could put up to $5,000 a year into an IAA, with cost-of-living adjustments starting after 2026. Distributions before age 18 would generally be restricted and taxable as capital gain when withdrawn. - Financial institutions and trustees: Trustees must be banks or eligible fiduciaries, keep assets separate, limit investments to qualifying mutual funds or ETFs, and file reports to the Treasury and beneficiaries. - Federal role: The Treasury would build procedures for certification, choose low-fee account providers, and an appropriation would fund federal seed payments.

## Provisions PRIA read

- New $1,000 baby deposit and limits: benefit, high. If enacted, the Treasury would deposit $1,000 into an Invest America Account for each eligible baby born after July 4, 2026. That federal $1,000 would not count as taxable income. Annual cash contributions to IAAs would be limited to $5,000 (with cost‑of‑living increases starting after 2026 and rou…
- New Invest America trust accounts: mixed, medium. If enacted, the bill would create a new tax-favored trust called an Invest America Account (IAA). IAAs would be exempt from normal income tax rules but still face tax on unrelated business income. Trustees would need to be banks or approved managers and keep assets separate. IAAs could only hold mu…
- Rules for withdrawals and excess deposits: mixed, medium. If enacted, IAAs generally could not pay out money before the beneficiary turns 18, except for qualified rollovers. Money taken from an IAA would be included in income but the bill would treat those IAA distributions as net capital gain for tax character. The bill would also add a penalty regime fo…

## 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-306: Fire Ready Nation Act of 2025

## Sources
- [119-s-1718 on Congress.gov](https://www.congress.gov/bill/119th-congress/senate-bill/1718)

## 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-306: Fire Ready Nation Act of 2025](https://policyrisk.com/legislation/119-s-306)
- [All bills in Congress](https://policyrisk.com/legislation)

Source: PRIA, https://policyrisk.com/legislation/119-s-1718 (as of 2025-12-21).