New legislation, The American Dream Accounts Act of 2024, would establish within the Social Security Administration a $5,000 account for every American child, to be invested in an index fund and vest upon graduation from high school, GED or waiver for disability.
Introduced by Rep. Dean Phillips, D-Minn., the bill, H.R. 9881, assumes a 10% annual rate of return — comparable to the performance of the S&P 500 — and and would provide beneficiaries "a windfall of approximately $25,000″ to help grow a nest egg, place a down payment on a home, for education or living expenses, or to start a small business.
The bill directs the SSA commissioner to set up the $5,000 American Dream Account for every newborn and child naturalized before age 18, to be invested in an S&P 500 or comparable index fund and be managed by the Social Security Administration.
