The United States issues $1,000 to newborns! "Trump Account" designates Robinhood and Bank of New York Mellon to handle it

The U.S. Department of the Treasury officially launches the Trump Accounts program, with the support and execution assistance of BNY Mellon Bank and Robinhood. The program aims to accumulate long-term wealth for the next generation through the capital markets.

The U.S. Department of the Treasury has released an official announcement, formally launching a major financial policy that is considered a “national capital experiment.” According to the Treasury Department’s statement, BNY Mellon Bank (BNY) has been designated as the government’s financial agent institution, while Robinhood will serve as the broker and initial trustee for Trump Accounts. Both are responsible for supporting the rollout and initial account management of the “Trump Accounts” program, symbolizing that the policy has officially entered the implementation stage.

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 in initial investment funds for each newborn between 2025 and 2028, and invest it directly into the market. After that, parents may contribute an additional up to $5,000 per year, and employers may also contribute an additional up to $2,500 for their employees’ children, with tax benefits. As a general rule, the funds cannot be used before the age of 18; after reaching adulthood, they can be converted into a long-term investment account to continue building wealth.

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Estimates related to the White House economic advisers suggest that, assuming an annualized return rate of about 10%, the $1,000 provided solely by the government could grow to approximately $5,800 after 18 years. If families continue to invest up to the maximum amount every year, the asset size could potentially exceed $300,000 at age 18, and even reach the $1 million level by age 28—becoming a core selling point in policy promotion.

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

According to 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 under government leadership, emphasizing security and ease of use so that families can conveniently look up and manage their account assets. The official says the overall system will remain under the Treasury Department’s control, including account operations and platform governance, to ensure public funds operate under strict regulation.

Under the cooperation framework, BNY has already established a partnership with Robinhood, which will serve as the broker and initial trustee for Trump Accounts. In addition, the interface design is jointly handled by National Design Studio and Robinhood, emphasizing the creation of an intuitive user experience so that families can enter the capital markets with a low barrier. The overall structure shows that this program is not a single government project, but rather an cross-industry collaboration that brings together a bank, a broker, and design teams.

The Treasury Department also emphasizes that this is carried out under its legally granted long-term authorization for “financial agents,” enabling it to designate qualified financial institutions to represent the government in executing financial services in the capacity of trustee. The official notes that all participating institutions must meet strict regulatory standards, performance requirements, and cybersecurity controls to ensure the safety of public funds and safeguard the government’s interests.

The government provides $1,000 to each newborn; under the system, at age 28 there can be a million dollars

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 in initial investment funds for each newborn between 2025 and 2028, and invest it directly into the market. After that, parents may contribute an additional up to $5,000 per year, and employers may also contribute an additional up to $2,500 for their employees’ children, with tax benefits.

Regarding investment targets, the policy includes clear restrictions: the funds must be invested in low-cost index funds or ETFs that track the U.S. large-cap stock market, and management fees must not exceed 0.1% to ensure that the effects of long-term compounding are not eroded by fees. This design is viewed as directly tying the assets of the public to U.S. economic growth, and realizing long-term wealth accumulation through the capital markets.

The account mechanism is similar to an Individual Retirement Account (IRA). As a general rule, the funds may not be accessed before age 18; after reaching adulthood, they can be converted into a long-term investment account to continue accumulating. If funds are withdrawn early, there may be restrictions or penalties, but there are exceptions for purposes such as education expenses and first-home purchases.

Estimates related to the White House economic advisers suggest that, assuming an annualized return rate of about 10%, the $1,000 provided solely by the government could grow to approximately $5,800 after 18 years. If families continue to invest up to the maximum amount every year, the asset size could potentially exceed $300,000 at age 18, and even reach the $1 million level by age 28—becoming a core selling point in policy promotion.

• This article is reproduced with authorization from: 《Chain News》
• Original title: 《Government provides $1,000 to newborns across the board! “Trump Account” designated for processing by Robinhood and BNY Mellon Bank》
• Original author: Neo