The United States will provide $1,000 to newborns! The “Trump account” specifies that Robinhood and Bank of New York Mellon handle the processing in New York Mellon.

The U.S. Department of the Treasury has officially launched the Trump Accounts program, with help from BNY Mellon and Robinhood. The program is designed to use capital markets to build long-term wealth for the next generation.

The U.S. Department of the Treasury released an official announcement to formally launch a major financial policy that is seen as a “mainstream capital experiment.” According to the Treasury’s statement, New York’s BNY Mellon (BNY) has been designated as the government’s financial agent, while Robinhood will act as the broker and initial trustee for Trump Accounts. Both parties are responsible for supporting the implementation of the “Trump Accounts” program and early account management, symbolizing that the policy has entered the execution phase.

Trump Accounts is positioned as an investment account designed for U.S. citizens under the age of 18. Under the current plan, the government will provide 1,000 U.S. dollars in initial investment funds for each newborn during the period from 2025 to 2028 and invest it directly into the market. After that, parents may contribute an additional up to 5,000 U.S. dollars each year, employers may also contribute an additional up to 2,500 U.S. dollars for their employees’ children, and the contributions come with tax benefits. As a rule, the funds may not be used before age 18; after adulthood, they can be converted into a long-term investment account to continue accumulating wealth.

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Based on estimates related to White House economic advisers, assuming an annualized return rate of about 10%, the 1,000 U.S. dollars provided only by the government could grow to about 5,800 U.S. dollars after 18 years. If families continue investing the maximum amount each year, the total asset size could break 300,000 U.S. dollars at age 18, and even reach the level of 1,000,000 U.S. dollars by age 28—becoming a core selling point in policy promotion.

U.S. Treasury designates BNY Mellon and Robinhood to help with Trump Accounts

According to the content of the announcement, BNY will help manage the first batch of accounts and will also participate in developing a dedicated Trump Accounts App. The application is positioned as a “white-label” product, designed and operated by the government, emphasizing security and ease of use, so that families can conveniently look up and manage their account assets. The official statement says the overall system will remain under the Treasury’s control, including account operations and platform governance, to ensure that public funds are used under strict regulation.

Under the cooperation structure, BNY has already established a partnership with Robinhood, and the latter will serve as the broker and initial trustee (trustee) for Trump Accounts. In addition, the interface design will be handled jointly by National Design Studio and Robinhood, emphasizing the creation of an intuitive user experience so that families can enter capital markets with a low barrier. Overall, the structure shows that this plan is not a single government initiative, but a cross-industry collaboration combining a bank, a broker, and a design team.

The Treasury also emphasized that this is based on its long-held statutory authority for “financial agents,” which allows it to designate qualified financial institutions to represent the government in executing financial services in the capacity of trustee. The official statement says that all participating institutions must meet strict regulatory standards, performance requirements, and cybersecurity controls to ensure the safety of public funds and protect the interests of the government.

The government provides 1,000 U.S. dollars to each newborn—under the system, you can have one million dollars at age 28

In terms of policy design, Trump Accounts is positioned as an investment account designed for U.S. citizens under the age of 18. Under the current plan, the government will provide 1,000 U.S. dollars in initial investment funds for each newborn during the period from 2025 to 2028 and invest it directly into the market. After that, parents may contribute an additional up to 5,000 U.S. dollars each year, employers may also contribute an additional up to 2,500 U.S. dollars for their employees’ children, and the contributions come with tax benefits.

In terms of investment targets, the policy includes clear restrictions: the funds must be invested in low-cost index funds or ETFs that track the U.S. stock market index, and it requires that management fees may not exceed 0.1%, to ensure that the effect of long-term compounding is not eroded by fees. With this design, it is seen as directly tying assets of the entire population to growth in the U.S. economy and achieving long-term wealth accumulation through capital markets.

The account mechanism is similar to an individual retirement account (IRA). As a rule, the funds may not be used before age 18; after adulthood, they can be converted into a long-term investment account to continue accumulating. If withdrawals are made early, restrictions or penalties may apply, but exceptions may be available for purposes such as education expenses and a first home purchase.

Based on estimates related to White House economic advisers, assuming an annualized return rate of about 10%, the 1,000 U.S. dollars provided only by the government could grow to about 5,800 U.S. dollars after 18 years. If families continue investing the maximum amount each year, the total asset size could break 300,000 U.S. dollars at age 18, and even reach the level of 1,000,000 U.S. dollars by age 28—becoming a core selling point in policy promotion.

• This article is reprinted with authorization from: 《Chain News》
• Original title: 《Government provides 1,000 U.S. dollars to newborns! “Trump Accounts” designated to be handled by Robinhood and BNY Mellon》
• Original author: Neo