Federal contributions to invest America accounts

(a) In general As soon as practical after an individual is certified as an eligible individual under subsection (c), the Secretary of the Treasury shall pay to the invest America account of such eligible individual an amount equal to $1,000. (b) Eligible individual For purposes of this section, the term eligible individual means any individual who— (1) is born after July 4, 2026, (2) is a United States citizen, and '(3) has at least one parent who, at the time of the individual's birth, is a United States citizen. (c) Certification of eligible individuals (1) In general The Secretary of the Treasury, in consultation with the Commissioner of Social Security, shall establish procedures for the certification of individuals as eligible individuals. (2) Timing No certification may be made under this section more than 6 months after the date of the individual's birth. (d) Automatic establishment of invest America accounts in certain cases (1) In general If an eligible individual does not have an invest America account, the Secretary shall establish such an account on behalf of such individual. (2) Selection of account provider The Secretary of the Treasury shall develop rules for the selection of persons described in section 530A(b)(1)(C) for the establishment of invest America accounts of individuals to whom paragraph (1) applies. Such rules shall provide for selection based on low fees, historical investment performance, administrative capabilities, and such other criteria as the Secretary determines appropriate. (e) Tax treatment (1) In general Part III of subchapter B of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 139I the following new section: 139J. Federal contributions to invest America accounts Gross income shall not include any contribution made by the Secretary to an invest America account under section 3(a) of the Invest America Act.. (2) Clerical amendment The table of sections for part III of subchapter B of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after the item relating to section 139I the following new item: Sec. 139J. Federal contributions to invest America accounts.. (3) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2024. (f) Appropriation There are hereby appropriated such sums as may be necessary to make payments under subsection (a).