The United States will issue $1,000 to newborns! The “Trump account” designates Robinhood and BNY Mellon to handle it

The U.S. Department of the Treasury has officially launched the Trump Accounts program, assisted by Bank of New York Mellon and Robinhood. The program is designed 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 to officially launch a major financial policy that is viewed as a “people’s capital experiment.” According to a statement from the U.S. Department of the Treasury, New York Mellon Bank (BNY) has been designated as the government’s financial agent, while Robinhood will serve as the broker and initial trustee for the Trump Accounts. Both are responsible for supporting the implementation and initial account management of the “Trump Accounts” program, symbolizing that the policy has entered the execution stage in an official manner.

Trump Accounts is positioned as an investment account designed for American citizens under the age of 18. 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 into the market. After that, parents may contribute an additional up to $5,000 each year, employers may also contribute an additional up to $2,500 for their employees’ children, and the contributions come with tax advantages. Funds, in principle, may not be used before the age of 18; after reaching adulthood, they can be converted into a long-term investment account to continue accumulating.

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

U.S. Department of the Treasury names Bank of New York Mellon and Robinhood to assist Trump Accounts

According to 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 under government leadership, emphasizing security and ease of use so that families can conveniently look up and manage account assets. The official statement notes that overall system control will be retained by the Treasury, 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, and the latter will serve as the broker and initial trustee (trustee) for Trump Accounts. In addition, the interface design will be jointly handled by National Design Studio and Robinhood, emphasizing the creation of an intuitive user experience so that families can enter the capital market with a low barrier to entry. The overall framework shows that this plan is not a single government initiative, but rather a cross-industry collaboration combining banks, brokers, and design teams.

The Treasury also emphasized that this is based on its statutory authority to long hold the “financial agent” role, enabling it to designate qualified financial institutions to represent the government and carry out financial services as trustees. The official statement said 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, with a system that can reach one million dollars by age 28

In terms of policy design, Trump Accounts is positioned as an investment account designed for American citizens under the age of 18. 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 into the market. After that, parents may contribute an additional up to $5,000 each year, employers may also contribute an additional up to $2,500 for their employees’ children, and the contributions come with tax advantages.

Regarding investment instruments, the policy sets clear restrictions: the funds must be invested in low-cost index funds or ETFs that track the broad U.S. stock market, and it requires that management fees must not exceed 0.1% to ensure that the effects of long-term compounding are not eroded by fees. This design is seen as directly linking people’s assets 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 withdrawals are made early, there may be restrictions or penalties, but exceptions are available for purposes such as education expenses and a first home purchase.

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

• This article has been republished with authorization from: 《Chain News》
• Original title: 《Government gives newborns $1,000 across the board! “Trump Account” designates Robinhood and Bank of New York Mellon to handle》
• Original author: Neo