On April 11, Texas Senator Ted Cruz was invited to speak at the 2026 California Republican Party Convention dinner to review the achievements of the current government. Some new policies that have caught widespread attention, including the “School Choice” drafted by Cruz and the so-called “Trump Accounts,” have been included in the “Budget Adjustment Act.”
Starting next year, taxpayers can donate up to $1,700 to American scholarship granting organizations and receive a corresponding tax credit – deducted directly from their taxes rather than as a pre-tax deduction. Cruz stated that this move will release billions of dollars, benefiting K-12 students across the country.
He emphasized that children in failing schools, where reading and writing skills are not taught, gangs infiltrate, and violence is rampant, face a bleak future. With the opportunity to transfer to new schools for a proper education through scholarships, these children now have a chance to achieve the American dream, potentially transforming the entire country.
However, state governors must actively choose to “opt in” for their state to receive funding and for their citizens to enjoy the benefits. Currently, all “red states” have opted in, while all “blue states,” except Colorado, have not yet decided. California remains undecided.
For citizens in states that have not opted in, Cruz recommended that they write checks to states that have opted in in order to receive tax credits. He predicted that as funds continue to flow steadily, within 10 years, all states will opt in as “parents unite to do the right thing for their children.”
The “Trump Accounts” are set to launch on July 4th, where every newborn in the U.S. will have a personal investment account receiving an initial $1,000 automatically. Parents, relatives, or employers can contribute up to $5,000 annually (with tax benefits), with the funds being invested in the S&P 500 index to benefit from compound growth.
Cruz highlighted that about half of Americans have never owned stocks or bonds. By illustrating the potential growth of accounts over time, he emphasized that even hardworking single mothers can use these accounts to educate their children, start businesses, or buy homes, fundamentally changing their children’s futures. Cruz noted the loss of confidence among young people in the free enterprise system and the growing interest in socialism. He stressed that this new “shareholder community” will no longer demonize large corporations and will take pride in becoming “small shareholders” of top companies.
Cruz believes that instilling a personal “financial stake” in children will change an entire generation. He drew a parallel to the impact of the Employee Retirement Income Security Act (ERISA) provisions for 401(k) plans, which revolutionized retirement savings in the U.S., with total 401(k) funds now exceeding $12 trillion.
He further mentioned the Working Families Tax Cut Act passed last summer, which included tax exemptions for tips, overtime pay, and Social Security benefits. Cruz underlined that as ordinary citizens begin to receive tax-exempt funds leading up to tax filing deadlines, this represents the most significant shift in the past decade. Had the government not taken action on January 1st of this year, a potential $4 trillion tax increase would have automatically taken effect, significantly burdening small businesses and families.
Cruz stated that the traditional narrative of the Republican Party being for the wealthy and the Democratic Party for the poor and working class has been completely overturned. In response to a question about political parties from a young leftist, Cruz pointed out historical facts demonstrating the shifting roles of the parties. He emphasized the significant accomplishments of the federal government over the past 15 months in reducing illegal border crossings by 99%, decreasing murder rates by 20%, and lowering the number of murder victims from 20,000 in 2024 to 15,000 in 2025.
He concluded by underscoring personal experiences relating to the American Dream, sharing the story of his father who fled Cuba at a young age to seek a better life in the U.S. Cruz’s own academic achievements, from a bachelor’s degree from Princeton University to a law degree from Harvard, were mentioned. He was emotional as he recounted his inauguration as a U.S. Senator in 2013, with his father present, highlighting the unique opportunities and possibilities offered by the United States.