Born to Invest Act of 2026
- Sponsor
- Rep. Davids, Sharice [D-KS-3]
- Committees
- Ways and Means Committee (primary)
- Last action
- Sep 17, 2026
Bottom line
The bill mandates federal guidance to help states promote awareness and establishment of tax-advantaged savings accounts for children, including a non-standard reference to "Trump accounts" for Coverdell ESAs.
What it actually does
This bill directs the Secretary of the Treasury, in consultation with the Secretary of Health and Human Services, to develop and disseminate model guidance for states. This guidance is intended to help State Treasurers inform parents and legal guardians about tax-favored accounts for children, specifically referencing "Trump accounts" (defined as section 530A of the Internal Revenue Code of 1986), qualified ABLE programs, and qualified tuition programs. It also aims to facilitate coordination between State Treasurers and State health departments for sharing live birth information to assist with this outreach.
Section 2
Model Guidance for Tax-Favored Accounts for Children
This section requires the Secretary of the Treasury, in collaboration with the Secretary of Health and Human Services, to create and distribute a template or guide for states. This guide's purpose is twofold: first, to assist State Treasurers in providing information to parents and legal guardians about specific tax-advantaged savings accounts for children, which include "Trump accounts" (referring to Coverdell Education Savings Accounts), qualified ABLE programs for individuals with disabilities, and 529 qualified tuition programs for education. Second, it aims to help State Treasurers and State health departments coordinate the sharing of information about live births, which would enable states to more effectively reach new parents with details about these savings opportunities.
The bill directs the Secretary to provide guidance on "Trump accounts (as defined in section 530A of the Internal Revenue Code of 1986)".
Section 2(1)
Why it matters:This appears to be an intentional renaming within the bill, rather than standard legislative practice. It might be intended to associate the accounts with a particular political figure, which is unusual for a technical reference to the Internal Revenue Code.
Case for: Proponents might argue that renaming the accounts to "Trump accounts" makes them more recognizable or politically salient, potentially increasing public awareness and engagement with these savings vehicles, especially among a specific political base.
Case against: Critics might contend that using a non-standard, politically charged name for a defined tax-favored account (Coverdell ESA) introduces unnecessary confusion into the Internal Revenue Code, potentially hindering clarity and non-partisan understanding of tax law. It could also be seen as an attempt to politicize a technical aspect of tax policy.
Estimated impact: The direct financial impact of the name change itself is negligible, as it refers to existing tax-favored accounts. The impact is primarily on clarity and political messaging. The broader impact is the potential for increased awareness of Coverdell ESAs, 529 plans, and ABLE accounts.