WASHINGTON, May 14, 2025 -- Today, the Investment Company Institute (ICI) issued the following statement after the House Ways and Means Committee approved a tax package including new "money accounts for growth and advancement." These tax-advantaged accounts for children would be funded by the Treasury Department with $1,000 each for Americans born from 2025 through 2028. Families could contribute up to an additional $5,000, and a trustee would direct the investments.
"ICI applauds Chairman Smith and the members of the Ways and Means Committee for their progress in extending vital tax relief for hardworking Americans. We are heartened by the committee's continued recognition of the importance of private savings and investments in helping Americans reach their financial goals.
"The inclusion of the new 'money accounts for growth and advancement' would foster a culture of investing among young people. We are grateful to Chairman Smith and Senator Cruz for their leadership on these new accounts. The accounts will help put a generation of young Americans on track to a lifetime of financial security as they see the power of compounding first-hand. We recommend that Congress build on this provision and support allowing a range of investment strategies, to empower the next generation to better understand their investments and take ownership of their financial future.
"ICI also welcomes the committee recognizing the importance of private sector savings more broadly, including through 529 plans and ABLE accounts. These are of critical importance for families saving for their children's education and for those with disabilities.
"We urge the swift advance of this important legislation."
Contact us: media@ici.org
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