Sovereign Wealth Fund Act

A bill to establish the Michigan Sovereign Wealth Fund for Generational Americans as a permanent, independently managed endowment; to capture a share of energy and resource revenues for the direct benefit of Michigan families; to deliver annual citizen dividends, homeownership assistance, education and workforce savings accounts, and family-stability supports; to prioritize multi-generational Michigan households while remaining open to all lawful residents at appropriate tiers; to protect the principal in perpetuity; to impose strict transparency and anti-corruption safeguards; and to create a lasting engine of middle-class prosperity and generational continuity for the people of Michigan.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Section 1. Short Title.

This act shall be known and may be cited as the “Michigan Sovereign Wealth Fund for Generational Americans Act” or the “MSWF-GA Act.”

Section 2. Legislative Findings.

The Legislature finds and declares all of the following:

(a) Michigan’s natural resources, energy production, and economic growth belong first to the citizens who built and sustain this State, especially multi-generational families with deep roots here.

(b) A permanent sovereign wealth fund that captures a portion of resource revenues and investment returns can deliver tangible, recurring benefits, dividends, homeownership help, education savings, and family supports—while reducing long-term reliance on traditional taxation.

(c) This is not a government spending account; it is a citizen-owned endowment designed to strengthen the middle class, reward stewardship, encourage young families to remain in Michigan, and compound prosperity across generations.

(d) Strict independent governance, transparency, principal protection, and constitutional safeguards are essential to prevent political capture or depletion.

(e) All provisions of this act shall be implemented consistent with the Constitution of the United States and the Constitution of the State of Michigan.

Section 3. Definitions.

As used in this act:

(a) “Fund” or “MSWF-GA” means the Michigan Sovereign Wealth Fund for Generational Americans established by this act.

(b) “Generational household” or “3+ generation household” means a household of U.S. citizens with documented multi-generational residency or family history in Michigan, as verified under rules adopted by the Board.

(c) “Board” means the independent Board of Trustees of the Fund.

(d) “Earnings” means net investment income and realized gains available for distribution after inflation protection and principal preservation requirements are met.

Section 4. Establishment and Structure of the Fund.

(1) There is created the Michigan Sovereign Wealth Fund for Generational Americans as a permanent endowment held in trust for the benefit of eligible Michigan residents, with priority for generational households.

(2) The Fund shall receive deposits from:

(a) Royalties, severance taxes, and related revenues from oil, natural gas, mineral extraction, and energy exports;

(b) A dedicated statutory share of new revenues attributable to Energy Dominance and related policies;

(c) Investment returns on the Fund principal;

(d) Voluntary contributions, unclaimed property, and a defined share of certain state asset sales or legal settlements.

(3) The core principal shall be preserved and invested for perpetual growth. Withdrawals shall be limited to earnings, subject to strict statutory caps that ensure the Fund endures for centuries.

Section 5. Eligibility and Benefit Priority.

(1) All lawful Michigan residents may participate in Fund benefits at base tiers.

(2) Generational (3+ generation) households shall receive priority in the form of higher or earlier dividend distributions and preferential access to homeownership, education, and family-stability programs, reflecting the Fund’s core mission to bolster those with longstanding ties to the State.

(3) Eligibility verification shall use simple, fraud-resistant methods based on birth records, long-term tax residency, or family-history documentation.

Section 6. Uses of the Fund – Middle-Class Prosperity.

(1) Annual Citizen Dividends. Once the Fund reaches sufficient scale, the Board shall distribute annual dividends to eligible households, modeled on successful permanent-fund examples. Initial targets may range from $2,500 to $5,000 per eligible adult and child, with higher or accelerated amounts for generational households as resources allow.

(2) Homeownership and Housing Assistance. Down-payment grants, low-interest loan support, or matching savings accounts shall be available for first-time and generational homebuyers purchasing primary residences in Michigan.

(3) Education and Workforce Savings Accounts. Tax-advantaged “Michigan Future Accounts” may be seeded with Fund dollars for K-12 support, vocational training, apprenticeships, or higher education, with emphasis on high-return skills in energy, manufacturing, trades, and technology.

(4) Family Stability Supports. Programs assisting multi-generational households, childcare cost relief, and elder care that keeps families together are authorized.

(5) Community and Economic Investments. A limited portion of earnings may support infrastructure in small towns and rural areas, seed capital for Michigan-based businesses that employ generational residents, and preventive healthcare or wellness initiatives, always subordinate to direct citizen benefits and principal protection.

Section 7. Investment Policy and Principal Protection.

(1) The Board shall invest the principal conservatively for long-term real growth, with authority to allocate a prudent portion to Michigan-focused infrastructure and resource-related assets consistent with fiduciary standards.

(2) No invasion of principal is permitted except under extraordinary circumstances defined by statute and requiring supermajority Board and legislative approval.

(3) The Fund shall not be used for political campaigns, partisan purposes, or crony projects.

Section 8. Independent Governance and Safeguards.

(1) The Fund shall be managed by an independent Board of Trustees with fiduciary duty to the beneficiaries. Membership shall include citizen representatives, financial experts, and bipartisan elected officials serving staggered terms to prevent political capture.

(2) Strict conflict-of-interest rules apply. Board members and staff are prohibited from personal financial benefit beyond reasonable compensation.

(3) Quarterly public reports, annual independent audits, and a live online dashboard shall disclose fund performance, deposits, distributions, and investment holdings.

(4) The Legislature expresses its intent to submit to the voters a constitutional amendment permanently enshrining the Fund, its mission, principal-protection rules, and core distribution priorities so that future politicians cannot easily raid or redirect it.

Section 9. Anti-Fraud and Administration.

Eligibility systems shall be designed to minimize fraud. False claims constitute a felony. Administrative costs shall be tightly capped so that the overwhelming majority of earnings reach citizens.

Section 10. Timeline and Reporting.

(1) Years 1–3: Establish the Fund, begin deposits from energy and resource revenues, and stand up governance.

(2) Years 4–8: Grow the Fund while initiating dividends and savings-account programs.

(3) Year 10 and beyond: Maintain a multi-billion-dollar endowment delivering meaningful annual benefits that strengthen the middle class and reduce pressure on the general fund.

(4) The Board shall report annually to the Governor and Legislature on fund size, returns, distributions, and demographic impact.

Section 11. Severability.

If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act and the application of its provisions to other persons or circumstances shall not be affected.

Section 12. Effective Date.

This act takes effect 90 days after enactment. The Board shall be appointed and the Fund opened for initial deposits within 180 days.

Enacting Section.

This act is ordered to take immediate effect.

Resources for Generational Michiganders.

Wealth for Families.

Prosperity Across Generations.

Michigan First. Families First. Futures First.