Sen. Cory Booker announced a new bill Monday that would establish a taxpayer-funded savings account for every American at birth.

“Today, nearly one in three American families have zero to negative wealth, and it’s hard to get ahead if you begin life behind the starting line,” said Mr. Booker, New Jersey Democrat.

The “American Opportunity Account Act” would essentially create a trust fund for every U.S. citizen born in the U.S. After age 18, the money can be accessed but only used for certain “human and financial capital investments” like buying a house or paying for higher education.

At birth, every child will be given $1,000 deposit into their new “Opportunity” account managed by the Treasury Department. Funds will accrue about 3 percent interest.

Every year, the account will receive an additional deposit, though the amount will vary depending on family income. For example, a child whose family brings in $25,100 or less will get around $2,000 each year.

As the plan targets income inequality, the more money a family makes, the less money is deposited into the account. A family of four that makes over $81,000 would only receive $250 in supplemental payments.

The senator plans on paying for these savings account by increasing taxes, specifically estate and inheritance taxes.

Mr. Booker will formally introduce the bill after the November midterms.