The Freedom Accounts Act of 2027
A Bill
To establish Freedom Accounts for every eligible American citizen and lawful permanent resident, redirect ineffective federal spending and federal asset value into individual ownership accounts, restore incentives for responsibility and productivity, protect core constitutional functions of government, and for other purposes.
TABLE OF CONTENTS
Title I – Findings, Purpose, and Definitions
Title II – Establishment of the Freedom Accounts Trust
Title III – Sources of Capital
Title IV – Individual Freedom Accounts
Title V – Investment Rules and Diversification
Title VI – Permitted Uses and Ownership Rights
Title VII – Social Security Transition
Title VIII – Behavioral Incentives, Accountability, and Redistribution
Title IX – Education, Year-Round Schooling, and Teacher Compensation
Title X – Law and Order, Freedom Courts, and Whistleblower Protections
Title XI – Efficiency, Waste Reduction, and Agency Savings
Title XII – Citizenship Verification, Decennial Audit, and Language
Title XIII – Administration, Fees, Audits, and Penalties
Title XIV – Implementation, Effective Dates, and Severability
TITLE I – FINDINGS, PURPOSE, AND DEFINITIONS
Section 101. Short Title
This Act may be cited as the “Freedom Accounts Act of 2027.”
Section 102. Findings
Congress finds that:
(1) Since the end of World War II, the United States has directed trillions of dollars into social, poverty, education, and related programs with limited lasting results for many citizens.
(2) Ownership and capital accumulation create stronger incentives for responsibility, productivity, and independence than pure spending programs.
(3) Federal real property, mineral resources, unspent agency balances, and ineffective non-core spending represent substantial capital that can be redirected into individual accounts owned by the people.
(4) Core constitutional functions of the federal government — national security, defense, interstate commerce, and the administration of justice — must remain fully protected and are not sources of capital under this Act.
(5) A system of individual ownership accounts, invested in broad market indexes and subject to clear rules, better aligns incentives with the long-term interests of the American people.
Section 103. Purpose
The purpose of this Act is to:
(1) Create universal Freedom Accounts for eligible citizens and lawful permanent residents;
(2) Capitalize those accounts through federal real property returns, mineral resources, agency efficiency savings, and redirected ineffective non-core spending;
(3) Restore ownership, incentives, and the ability of Americans to own their future; and
(4) Reduce long-term dependency while protecting the core functions of government.
Section 104. Definitions
In this Act:
(1) “Freedom Account” means an individual ownership account established under Title IV.
(2) “Freedom Accounts Trust” or “Trust” means the trust established under Title II.
(3) “Eligible individual” means a United States citizen or lawful permanent resident who has completed required verification.
(4) “Protected categories” means National Security, Defense, Homeland Security operational functions, Interstate Commerce, Core Infrastructure, and the administration of Justice (including law enforcement and corrections).
(5) “Ineffective non-core spending” means federal spending outside the protected categories that Congress determines does not efficiently advance measurable public outcomes.
TITLE II – ESTABLISHMENT OF THE FREEDOM ACCOUNTS TRUST
Section 201. Establishment
There is established the Freedom Accounts Trust. The Trust shall hold and manage capital for the benefit of individual Freedom Accounts.
Section 202. Governance
(a) The Secretary of the Treasury shall serve as Chairman of the Board of Trustees and shall have overall fiduciary responsibility for the Trust.
(b) The chief financial officers or treasurers of the States shall serve as members of the Board and shall manage day-to-day enrollment, verification, suspensions, and state-level operations.
(c) The Trust instrument shall prohibit Congress or any federal agency from using Trust capital for any purpose other than the benefit of eligible account holders. Violation constitutes a breach of public trust subject to civil and criminal penalties.
Section 203. Management Fee
A management fee of five percent (5%) of gross account value shall be assessed annually and split equally between the Treasury and the States to cover administration. No other fees may be charged to account holders.
TITLE III – SOURCES OF CAPITAL
Section 301. Federal Real Property
(a) All federal real property and associated returns, including approximately 640 million acres of federal land and real estate, shall be placed under the management of the Trust for the purpose of generating returns and, upon congressional authorization of closure or excess determination, monetization proceeds.
(b) Public access and existing uses remain unchanged until a specific asset is authorized for closure or transfer by Congress.
(c) Real estate and mineral assets shall not be treated as national security assets for purposes of exclusion from the Trust.
Section 302. Mineral and Energy Resources
One hundred percent of the federal share of revenues from oil, gas, and mineral resources on public lands shall be deposited into the Trust for allocation to Freedom Accounts.
Section 303. End of “Spend It or Lose It” Rule
Unspent balances and documented efficiency savings from federal agencies at the end of each fiscal year shall be deposited into the Trust rather than returned to the Treasury general fund or spent to avoid lapse.
Section 304. Redirected Ineffective Non-Core Spending
Beginning in the first full fiscal year after enactment, amounts previously appropriated for ineffective non-core programs (excluding protected categories) shall be invested into the Trust on a schedule that matches the historical spending period since the end of World War II, adjusted for inflation and population, so that capitalization occurs gradually over comparable decades rather than in a single appropriation.
Section 305. Protected Categories
Nothing in this Act shall reduce funding for National Security, Defense, Homeland Security operational functions, Interstate Commerce, Core Infrastructure, or the administration of Justice.
TITLE IV – INDIVIDUAL FREEDOM ACCOUNTS
Section 401. Universal Establishment
Every eligible individual shall receive a Freedom Account. Accounts are the property of the individual.
Section 402. Initial Capitalization and Ongoing Credits
Accounts shall be credited with their pro-rata share of Trust capital according to rules established by the Board, subject to verification and behavioral provisions of this Act.
Section 403. Voluntary Redistribution
An account holder may elect to retain as little as one dollar and direct the remainder for the benefit of other eligible accounts. This decision is entirely voluntary.
TITLE V – INVESTMENT RULES AND DIVERSIFICATION
Section 501. Primary Investment
Freedom Account capital shall be invested primarily in broad equity indexes, including the S&P 500.
Section 502. Permitted Diversification
The Board may authorize limited diversification into:
(1) Investment-grade bonds;
(2) Small- and mid-cap equities;
(3) Publicly listed real estate funds and REITs (no private funds).
International REITs may be included within listed funds.
TITLE VI – PERMITTED USES AND OWNERSHIP RIGHTS
Section 601. Restricted Uses Before Age 65
Prior to age 65, an account holder may withdraw funds only for:
(1) Education expenses;
(2) Healthcare supplement;
(3) Job training;
(4) Student loan payments; and
(5) Purchase of a primary residence.
Section 602. Full Ownership at Age 65
Beginning at age 65, the account holder has full ownership. The holder may keep what remains, spend it, or pass it to heirs. There is no clawback.
Section 603. Legal Defense
Account funds may be used to retain legal counsel for defense of the account holder’s rights.
TITLE VII – SOCIAL SECURITY TRANSITION
Section 701. Guarantee of Existing Benefits
All amounts already paid into Social Security, and all benefits currently payable to retirees and those who have reached eligibility, remain fully guaranteed. Nothing in this Act reduces or impairs benefits already earned or currently being paid.
Section 702. Starting Balance of Freedom Accounts
Every eligible individual’s Freedom Account shall begin with a starting balance equal to the total amount of Social Security contributions paid by or on behalf of that individual as of the effective date of this Act.
This starting balance is the property of the account holder and forms the base of the Freedom Account before any additional Trust capital is allocated.
Section 703. Concurrent Receipt
Every eligible individual who receives a Freedom Account shall also continue to receive their Social Security benefits according to the transition rules in this Title. Recipients receive both systems during the transition period.
Section 704. Phase-Out Schedule for Younger Americans
Traditional Social Security payroll-tax financing and benefit accrual shall phase out for younger Americans according to the following schedule, measured by age on the effective date of this Act:
(1) Age 55 and older
Full traditional Social Security benefits remain permanently in place, in addition to Freedom Accounts.
(2) Age 45 through 54
Traditional Social Security benefits are retained at 100% for the first 10 years after enactment, then reduced by 5 percentage points per year until Freedom Accounts become the primary vehicle.
(3) Age 35 through 44
Traditional Social Security benefits are retained at 75% initially, then reduced on a straight-line basis over 25 years so that Freedom Accounts become the primary retirement vehicle.
(4) Under age 35
Traditional Social Security benefit accrual is reduced on a straight-line basis over 30 years. Freedom Accounts serve as the primary ownership and retirement vehicle for this cohort.
Section 705. No Election Required
There is no opt-in, opt-out, or blended election. The transition rules above apply automatically based on age at enactment. Existing retirees and those already receiving benefits are fully protected and receive both Social Security and Freedom Accounts.
Section 706. Payroll Tax Treatment During Transition
During the phase-out period, a declining portion of the existing Social Security payroll tax may continue to fund remaining traditional benefits, while an increasing portion is directed into the Freedom Accounts Trust for the benefit of individual accounts, as determined by the Board in consultation with the Social Security Administration and the Treasury.
TITLE VIII – BEHAVIORAL INCENTIVES, ACCOUNTABILITY, AND REDISTRIBUTION
Section 801. Purpose
Freedom Accounts create incentives for responsibility. Forfeited contributions are permanently redistributed to the accounts of eligible, rule-following participants.
Section 802. Criminal Convictions
Contributions to the account of a person convicted of a crime shall be suspended for the period of incarceration. Persons sentenced to life imprisonment are ineligible; their contributions are redistributed.
Section 803. Juvenile and School Conduct
(a) For each day of school suspension, the monthly contribution is reduced by one dollar.
(b) An additional fifty-dollar penalty applies for each month of expulsion.
(c) Reductions are permanent and non-restorable.
Section 804. Redistribution
All forfeited amounts are permanently redistributed to the accounts of eligible participants and are never returned to the offender.
TITLE IX – EDUCATION, YEAR-ROUND SCHOOLING, AND TEACHER COMPENSATION
Section 901. Education Freedom
Education dollars follow the student. Parents may direct Freedom Account education funds to any public, private, or home-education option permitted under state law.
Section 902. Year-Round Schooling Incentive
Schools (public, private, or home-based programs) that adopt year-round calendars and demonstrate improved outcomes are eligible for enhanced Trust support. Average teacher compensation in participating year-round programs shall be supported at a target of $90,000, provided teachers are engaged solely in instructional duties.
Section 903. Professional Standards
Teachers who fail to adhere to professional guidelines may face suspension of their own Freedom Account contributions for the period of any employment suspension.
TITLE X – LAW AND ORDER, FREEDOM COURTS, AND WHISTLEBLOWER PROTECTIONS
Section 1001. Constitutional Enforcement
Law enforcement officers, judges, and legislators who fail to enforce the law in accordance with the Constitution may be subject to civil penalties of $1,000 per act and suspension of Freedom Account contributions for up to twelve months, upon determination by competent jurisdiction or ethics process.
Section 1002. Freedom Courts
(a) Freedom Courts are established to hear whistleblower and reprisal claims after an agency has issued (or failed to issue) a report within 90 days.
(b) Civilian cases are heard by civilian Freedom Courts; military cases by military Freedom Courts composed of service members and dependents (commanders and supervisors are barred from service due to conflicts of interest).
(c) The standard of proof is preponderance of the evidence.
(d) A victim may be awarded compensation in an amount recommended by the panel, funded in part from the offending individual’s Freedom Account and in part from the Treasury and the budget of the offending agency.
(e) Default rulings may issue for failure to report within 90 days.
(f) Appeals are limited to questions of law and constitutionality.
Section 1003. Strong Whistleblower Protections
Retaliation against whistleblowers is prohibited. Substantiated retaliation triggers the remedies in this Title.
TITLE XI – EFFICIENCY, WASTE REDUCTION, AND AGENCY SAVINGS
Section 1101. Broad Efficiency Rule
All federal programs, including those in protected categories, are subject to efficiency requirements. Documented waste, abuse, or unnecessary expenditures shall be recovered and deposited into the Trust.
Section 1102. Clawback for Gaming
Any person or entity found to have gamed or manipulated Trust operations shall be subject to clawback of improperly obtained amounts plus a five-percent penalty, in addition to criminal and civil penalties for breach of public trust.
TITLE XII – CITIZENSHIP VERIFICATION, DECENNIAL AUDIT, AND LANGUAGE
Section 1201. Eligibility Verification
Every person registering for a Freedom Account must present a birth certificate, valid photo identification, and Social Security number. Parents verify minor children.
Section 1202. Decennial Verification
Every ten years, account holders must re-verify citizenship or lawful permanent resident status within a 90-day window. Failure results in permanent loss of contributions for the unverified period; those amounts are redistributed.
Section 1203. Penalties for Ineligible Registration
Any person not eligible who registers or attempts to register, or who causes another to register improperly, shall be ineligible for residency in the United States and subject to additional civil and criminal penalties. Whistleblowers who report such fraud may receive a reward drawn from forfeited amounts.
Section 1204. Official Language
English is the official language of the Freedom Accounts Trust for all instruments, notices, and communications.
TITLE XIII – ADMINISTRATION, FEES, AUDITS, AND PENALTIES
Section 1301. Annual Audits
The Trust and a statistically valid sample of individual accounts shall be audited annually. Results shall be made public.
Section 1302. Penalties for Abuse
Any person who manipulates, abuses, or improperly impacts Trust operations shall face criminal and civil penalties for breach of the public trust.
Section 1303. Public Tip Line
A public tip line shall be maintained for reports of fraud, abuse, or ineligible registrations.
TITLE XIV – IMPLEMENTATION, EFFECTIVE DATES, AND SEVERABILITY
Section 1401. Phased Implementation
(a) The Trust and real-property capitalization mechanisms shall be established immediately upon enactment.
(b) Redirected spending and full account funding shall phase in over a period matching the historical spending horizon since the end of World War II, adjusted for inflation and population.
(c) States may contribute their own real property assets on a voluntary basis.
Section 1402. Effective Date
This Act takes effect on January 1 of the year following enactment, except for provisions necessary for immediate Trust establishment.
Section 1403. Severability
If any provision of this Act is held invalid, the remainder shall continue in effect.
