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 launched the Trump Accounts program, with the help of BNY Mellon Bank of New York and Robinhood for implementation. The program is intended to help the next generation accumulate long-term wealth through the capital markets.

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

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

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In estimates related to the White House’s economic advisers, assuming an annualized return rate of about 10%, the $1,000 provided by the government alone could grow to about $5,800 after 18 years. If families continue to invest the maximum amount every year, the size of assets could have a chance to exceed $300,000 when they turn 18, and even reach the $1,000,000 level by age 28—becoming a core selling point in the policy promotion.

The U.S. Treasury names 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 also participate in developing a dedicated Trump Accounts App. The app is positioned as a “white-label” product, designed and operated with the government leading the way, emphasizing security and ease of use, so families can conveniently check and manage their account assets. The official said that overall control of the system will remain with the Treasury, including account operations and platform governance, to ensure that public funds operate under strict oversight.

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

The Treasury also emphasized that this is based on its long-standing statutory authority to “financial agents,” which allows it to designate qualified financial institutions to carry out financial services on behalf of the government in the capacity of a trustee. The official said that all participating institutions must meet strict regulatory standards, performance requirements, and cybersecurity controls to ensure the safety of public funds and protect the government’s interests.

The government provides $1,000 to each newborn—by age 28 it can reach a million dollars

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

Regarding investment targets, the policy sets clear limitations: the funds must be invested in low-cost index funds or ETFs that track the U.S. stock market benchmark, and management fees must not exceed 0.1%, to ensure that the long-term compounding effect is not eroded by fees. This design is seen as directly tying the wealth of the entire public to the growth of the U.S. economy, and achieving long-term wealth accumulation through the capital markets.

The account mechanism is similar to an individual retirement account (IRA). In principle, the funds may not be used 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 exceptions may be available for uses such as education expenses and first-home purchases.

In estimates related to the White House’s economic advisers, assuming an annualized return rate of about 10%, the $1,000 provided by the government alone could grow to about $5,800 after 18 years. If families continue to invest the maximum amount every year, the size of assets could have a chance to exceed $300,000 when they turn 18, and even reach the $1,000,000 level by age 28—becoming a core selling point in the policy promotion.

• This article is republished with authorization from: 《LianNews》
• Original title: 《The government provides $1,000 to newborns! The “Trump account” is designated to be handled by Robinhood and BNY Mellon Bank》
• Original author: Neo