Bills · S 1718
IN COMMITTEE· 119TH CONGRESS
Senate BillS 1718Taxation
Invest America Act
INTRO MAY 12· LAST ACTION MAY 12
READING
9MIN
COSPONSORS
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READER REACTIONS0 TOTAL
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- Introduced only
LEGISLATIVE PROGRESS
STEP 2 / 8Introduced
In Committee
Reported
Passed Senate
Passed House
Conference
To President
Became Law
WHAT THE BILL DOES
AI-writtenThis bill matters because it introduces a new option for personal savings, aiming to encourage long-term investment. By offering tax-free growth and lower capital gains tax rates on distributions, it could make investing more appealing to a broader range of Americans, potentially helping them build wealth over time. The restriction to S&P 500 index funds promotes diversified, low-cost investing, which is often recommended for most investors.
If this bill becomes law, it provides another tool for financial planning, potentially shifting some investment capital into these specific types of index funds. If it doesn't pass, individuals will continue to rely on existing savings and investment vehicles like IRAs, 401(k)s, and taxable brokerage accounts, without this specific tax-advantaged option for S&P 500-only investing.
KEY PROVISIONS
5AI-extractedPROVISION 01
Establishes 'Invest America Accounts' (IAAs) as a new type of trust or custodial account.
This creates a new tax-advantaged savings vehicle distinct from existing retirement or educational accounts.
PROVISION 02
Contributions to an IAA grow tax-free, and distributions are generally taxed at net capital gains rates.
This provides a significant tax benefit, allowing investments to compound more efficiently over time compared to taxable accounts.
PROVISION 03
Annual cash contributions are limited to $5,000, adjusted for inflation after 2026.
This sets a ceiling on how much individuals can contribute each year, balancing tax benefits with accessibility.
PROVISION 04
Funds in an IAA can only be invested in mutual funds or exchange-traded funds that track the S&P 500 index.
This limits investment choice but promotes low-cost, diversified investment in a broad market index.
PROVISION 05
Distributions are generally not allowed until the beneficiary reaches 18 years of age.
This provision encourages long-term saving, particularly for younger individuals, by restricting early withdrawals.
SPONSORSHIP
1 + 0
R· Texas
YRS IN OFFICE
13
BILLS LED
133
ACTION TIMELINE
2 EVENTSMAY 12
Introduced in Senate
MAY 12
Read twice and referred to the Committee on Finance.
BILL INFO
TypeSenate Bill
NumberS 1718
Congress119th
StatusIn Committee
IntroducedMay 12, 2025
Last actionMay 12, 2025
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IN COMMITTEE· 119TH CONGRESS · FINANCE COMMITTEE · INTRODUCED MAY 12, 2025
Senate BillS 1718Taxation
Invest America Act
INTRODUCED MAY 12, 2025· LAST ACTION MAY 12, 2025
PASSAGE CHANCES
—%
READING
9 min
COSPONSORS
0
COMPLEXITY
Moderate
