Referred to the House Committee on Ways and Means.
Creates a new tax-preferred custodial trust called a MAGA account (Money Account for Growth and Advancement) for children, allowing annual contributions (limit $5,000, COLA-adjusted) invested in low-fee U.S. equity index funds. Distributions for qualified expenses (higher education, post-secondary credentials, certain small business expenses, first-time home purchase) receive favorable capital-gains tax treatment; other distributions are taxable and penalized if taken early.
Privacy/data sharing: conservatives oppose Treasury disclosures; liberals seek protections.
Relative to its intended legislative type, this bill is a substantive tax-law change that is largely well-specified in statutory mechanics and integration with existing Internal Revenue Code provisions, but it relies on significant delegation to the Secretary for key definitions and omits fiscal and administrative resourcing detail.
Creates a new tax-preferred custodial trust called a MAGA account (Money Account for Growth and Advancement) for children, allowing annual contributions (limit $5,000, COLA-adjusted) invested in low-fee U.S. equity index funds.
Distributions for qualified expenses (higher education, post-secondary credentials, certain small business expenses, first-time home purchase) receive favorable capital-gains tax treatment; other distributions are taxable and penalized if taken early.
Accounts require SSNs, trustee oversight, reporting, and terminate at age 31 (treated as distribution).
Substantive but narrow tax-advantaged account could attract bipartisan support; fiscal cost, privacy and citizenship limits reduce prospects.
Relative to its intended legislative type, this bill is a substantive tax-law change that is largely well-specified in statutory mechanics and integration with existing Internal Revenue Code provisions, but it relies on significant delegation to the Secretary for key definitions and omits fiscal and administrative resourcing detail.
Privacy/data sharing: conservatives oppose Treasury disclosures; liberals seek protections.
These are examples from the analysis, not a ranked list of the most-affected groups.
Privacy/data sharing: conservatives oppose Treasury disclosures; liberals seek protections.
Generally supportive of tools that create asset-building for children and a small federal seed contribution.
Concerned about exclusions, regressivity, and privacy; wants safeguards for low-income families and noncitizen children.
Sees potential to expand education and homeownership access, but cautious about implementation details and limited contribution mechanics.
Cautiously positive about encouraging private savings for children and a modest federal pilot contribution, but wary of cost, overlap, and administrative complexity.
Wants clearer fiscal estimates, anti-duplication with 529/UTMA, and strong privacy protections.
Would support with tighter guardrails and a clear implementation plan.
Generally favorable toward encouraging private, market-based savings for children and limiting investments to low-cost U.S. index funds.
Concerned about federal creation of default accounts, data-sharing requirements, and any ongoing federal contributions.
Prefers minimizing ongoing federal roles and ensuring parental control and low administrative cost.
Reached or meaningfully advanced
Reached or meaningfully advanced
Still ahead
Still ahead
Still ahead
Substantive but narrow tax-advantaged account could attract bipartisan support; fiscal cost, privacy and citizenship limits reduce prospects.
The bill has not accumulated any surfaced votes yet.
Privacy/data sharing: conservatives oppose Treasury disclosures; liberals seek protections.
Substantive but narrow tax-advantaged account could attract bipartisan support; fiscal cost, privacy and citizenship limits reduce prospect…
Relative to its intended legislative type, this bill is a substantive tax-law change that is largely well-specified in statutory mechanics and integration with existing Internal Revenue Code provisions, but it relies on…
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